Directors and officers liability Insurance (often called D&O) is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers.
The D&O policy will pay for defense costs and financial losses.
In addition, extensions to many D&O policies also cover costs for managers generated by administrative and criminal proceedings or in the course of investigations by regulators or criminal prosecutors.
These coverage extensions are gaining more and more importance among company directors. In ths way, managers receive comprehensive, integrated cover that ensures them a reliable, consistent and structured legal defense.