Directors and Officers (D&O) Liability insurance is a type of insurance policy that provides coverage to directors and officers of a company for claims made against them while performing their duties. The policy covers the costs associated with defending against claims or lawsuits brought by employees, shareholders, customers, or other parties alleging wrongdoing or negligence on the part of directors or officers.

D&O insurance typically covers legal fees, settlements, and judgments that the company or its directors and officers may be required to pay as a result of a covered claim. It can also cover the costs of investigations and regulatory actions. D&O insurance is particularly important for companies that are publicly traded, as their directors and officers are exposed to a higher level of risk due to the increased scrutiny and regulations associated with being a public company.

The coverage provided by D&O insurance can vary depending on the policy and the specific terms and conditions. Some policies may also provide coverage for certain types of employment-related claims, such as discrimination or harassment. It is important for companies to carefully review and consider their insurance needs and obtain appropriate coverage to protect their directors and officers from potential liability.