Directors Officers Insurance Explained. Mistakes and errors of judgment can happen, and in that case, the directors and officers of your business may be found legally responsible. Definition of ‘directors and officers liability insurance’
Directors and officers (d&o) insurance is a liability protection policy designed to protect corporate directors and officers against potential legal problems arising while carrying out their official duties. Directors and officers (d&o) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company. Another type of d&o insurance is personal d&o insurance, which protects an individual director.