Directors and Officers Liability Insurance

Directors Insurance, or Directors and officers liability insurance (often called “D&O”) is liability insurance covering the directors and officers of a company against the consequences of legal action.

The policy provides defence costs in the event an insured suffers a loss as a result of a legal action brought for alleged wrongful acts in their capacity as a director and officer of a company.

The policy also extends to include cover for defence costs arising out of criminal and regulatory investigations including trials for both civil and criminal actions brought against directors/officers.

Intentional illegal acts, however, are typically not covered under D&O policies.

Directors and officers can also be called management liability insurance, which covers liabilities of the company itself as well as the personal liabilities for the directors and officers.