Directors and Officers Liability Coverage 

Directors and Officers Liability Coverage, or D&O liability coverage, is a type of insurance that protects individuals serving on a company’s board of directors or as officers from legal claims made against them in connection with their role in the organization. This coverage is designed to provide financial protection and support in case directors and officers face lawsuits alleging wrongful acts or omissions while performing their duties. It is important to note that D&O liability coverage typically does not cover criminal acts or intentional wrongdoing. Instead, it focuses on claims arising from errors, misjudgments, or negligence in decision-making or management. This type of insurance is essential for companies and their directors and officers as it helps them mitigate potential personal financial risks associated with lawsuits. D&O liability coverage can be especially crucial in situations such as bankruptcy, mergers or acquisitions, where the risk of lawsuits and claims against directors and officers may increase. In such cases, this coverage acts as a safety net, providing the necessary resources to handle legal defense costs, settlement payments, or judgments. By having D&O liability coverage, directors and officers are better equipped to fulfill their responsibilities without fear of personal financial ruin. It not only safeguards the interests of the individuals serving in these roles but also helps attract and retain qualified professionals in positions of leadership within the company.