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Directors and officers liability Insurance

What is Directors and officers liability Insurance ?

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 itself, as indemnification (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 directors and officers. Such coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are brought against directors/officers simultaneously. Intentional illegal acts, however, are typically not covered under D&O policies.

It has become closely associated with broader management liability insurance, which covers liabilities of the corporation itself as well as the personal liabilities for the directors and officers of the corporation.

What is Side A coverage for directors and officers?

Directors and Officers (D&O) liability policies provide three distinct coverages. The first (known as Side A) is liability coverage for individual directors and officers of the parent organization (termed “directors and officers liability insurance”)

What is non profit directors and officers insurance?

D&O liability insurance indemnifies directors and officers of non profit organizations for damages and defense costs arising from lawsuits alleging various “wrongful acts.”