Directors and officers (D&O)
Coverage for personal liability of leaders sued over company decisions.
Plain definition
Directors and officers (D&O) liability insurance protects individual directors and officers when they are sued for alleged wrongful acts in managing an organization—breach of duty, misleading statements, or employment-related leadership decisions, subject to exclusions. It often includes entity coverage for securities claims on public companies.
Why it matters
Board service for nonprofits and startups exposes personal assets if D&O is missing or eroded by exclusions for fraud.
Example
Investors sue founders alleging misrepresentation in a pitch deck. D&O may fund defense and settlements for covered individuals up to limits.
Common misunderstanding
D&O is not general liability for slip-and-falls at the office—it targets management decisions and leadership claims.
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