Directors and Officers (D&O) liability insurance protects the personal assets of corporate directors and officers, 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.

The core purpose of a D&O policy is to provide financial protection for employees against the consequences of actual or alleged “wrongful acts” when acting in the scope of their decision-making duties. The D&O policy will pay for defence costs and financial losses. 

All current, future and past directors and officers of a company and its subsidiaries can be covered under a D&O policy, which can also include non-executive directors. In very specific cases like securities claims, the policy can even be extended to cover claims against the company itself. Cover is usually taken out and paid for by the company.

D&O Insurance Market is diversified. The coverage is mostly provided by international specialized markets rather than local insurers.