Directors and Officers Liability (D&O)

Shielding Leaders from Legal & Financial Risks.

Companies, along with their directors and officers, are subject to increasingly stringent regulations and a challenging litigation environment. As regulatory scrutiny intensifies and stakeholders become more litigious, the risks faced by corporate leaders continue to grow. A single decision that negatively impacts shareholders, employees, customers, or creditors—or one that inadvertently violates a regulatory requirement—can trigger costly legal action.

In such cases, directors and officers may be held personally liable, putting their financial security at risk. A Directors & Officers (D&O) Liability policy provides essential protection, covering legal defense costs and financial damages resulting from alleged wrongful acts, whether due to negligence, mismanagement, or oversight. By safeguarding both individual executives and the company’s balance sheet, a D&O policy ensures that businesses can navigate complex legal challenges with greater confidence and stability.

D&O insurance is intended to provide cover for directors, officers, and other insureds including the company itself in certain circumstances – for liability that arises out of their role as directors or officers of the company.

Of course, while directors and officers coverage is subject to some exclusion and other coverage terms, the policy typically will pay for defense costs, settlements, and judgments, typically in excess of a deductible for those claims.