D&O Insurance (Directors and Officers Liability Insurance) provides liability coverage for board directors and corporate officers against claims arising from corporate-role decisions. It protects personal assets against lawsuits alleging breach of fiduciary duty, misrepresentation, financial mismanagement, or similar claims, and is typically purchased by the company on behalf of its directors and officers rather than by individuals. It becomes increasingly important as companies grow and attract more litigation exposure, and it's the insurance product that makes serving as a director or officer of a company economically feasible.
The coverage:
What's covered: