Directors and Officers Liability Insurance is commonly referred to as "D&O Insurance." The goal of D&O Insurance is to protect officers and directors of a corporation from liability in the event of a claim or lawsuit against them asserting wrongdoing in connection with the company's business.

Once you start to rely on others to run your business (board of directors and professional managers), D&O Insurance becomes desirable. D&O Insurance basically protects against liability claims from people who allege that in conducting the business of the corporation, the directors and officers breached a legal duty to them. Essentially, D&O insurance can provide protection for claims that result from errors in judgment. Directors have potential liability for not adequately performing their obligations or failing to exercise reasonable business judgment. 

It is very important to compare multiple quotes to ensure that you are getting the best coverage for the cost. Let us assist you in getting the best price and the most coverage for your directors and officers.


Source: AllBusiness Newsletter