Directors and Officers Liability
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, to cover damages or defense costs in the event they suffer such losses as a result of a lawsuit for alleged wrongful acts while acting in their capacity as directors and officers for the organization.
Coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, civil and criminal actions are often brought against directors/officers simultaneously. D&O has become closely associated with broader management liability insurance, which covers liabilities of the corporation as well as the personal liabilities for the directors and officers of the corporation.