Business Insurance
Directors & Officers (D&O) Insurance
Definition
Liability insurance that protects the personal assets of corporate directors and officers when they are sued for alleged wrongful acts in their capacity as company leaders. Covers defense costs, settlements, and judgments arising from claims of mismanagement, breach of fiduciary duty, regulatory violations, or investor lawsuits. Policies typically include Side A (individual coverage), Side B (corporate reimbursement), and Side C (entity coverage).
In Zach’s Words
“If you sit on a board or run a company, D&O insurance protects your personal assets when someone claims you made a bad business decision. Shareholders, investors, employees, regulators — they can all come after you personally. Without D&O, your house, savings, and personal wealth are on the line. It's separate from E&O (which covers professional mistakes in your services) and EPLI (which covers employment disputes). D&O is about leadership decisions. If you're raising money, bringing on investors, or sitting on a nonprofit board, you need this.”
— Zach Nadler, CIO