Directors and Officers 

            (D & O)

What is Directors and Officers coverage, also known as D & O coverage? 

D & O coverage is liability insurance payable to the director and officer of a company, or to the organization itself, as an indemnification or 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 director and officer. Intentional illegal acts are not covered under a D & O policy. 

The types of claims are dependent upon the nature of the corporation. For public companies, claims are primarily due to lawsuits by shareholders after financial difficulties, 69% of public traded companies had claimed for a shareholder lawsuit in the past 10 years.