Directors & Officers (D&O)

What is D&O insurance?

Directors & officers insurance covers the legal costs, settlements, and judgments that come from claims made against your board members, officers, or the organization itself over decisions made in running the business. It protects the people making the calls, not just the business itself.

Who needs it

Any organization with a board or leadership team carries this exposure, not just large public companies. Nonprofits, private businesses, and growing companies all face it, and it becomes especially important when you’re trying to attract experienced directors or officers, since few will join a board without knowing they’re protected.

What it covers

• Breach of fiduciary duty, if leadership is accused of mismanaging funds or acting against the organization’s interests
• Regulatory and compliance claims, when an organization is accused of failing to meet legal or industry requirements
• Employment-related claims, tied to workplace decisions made by leadership
• Legal defense costs, even when a claim ultimately turns out to be groundless
• Personal asset protection for directors and officers named individually in a lawsuit

What it typically doesn’t cover

• Illegal acts or profits gained through fraud
• Criminal proceedings
• Claims arising from conduct the organization or individual knew was wrongful at the time