What is Director and Officer Liability Insurance?
Director and officer liability insurance protects the personal assets of a company’s leadership—directors, officers, and board members—against claims arising from decisions made while managing the company. It covers legal defense costs, settlements, and damages linked to mismanagement, breach of duty, or regulatory actions.
Who is Director and Officer Liability Insurance For?
This insurance is essential for:
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Private, Public & Non-Profit Companies
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Startups & SMEs seeking investor trust
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NBFCs & Fintechs with regulatory exposure
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Any organization with a board or senior leadership team
Why Do You Need Director and Officer Liability Insurance?
Running a business involves decisions—and risks. This insurance helps you:
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Protect personal assets of directors and officers
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Handle legal claims from employees, investors, vendors, or regulators
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Strengthen governance and board confidence
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Fulfill investor and compliance expectations
Without coverage, your leaders could face personal lawsuits—even if innocent.
What Does It Cover?
Director and officer liability insurance typically includes:
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Wrongful acts: negligence, breach of duty, misrepresentation
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Legal defense costs (investigations, lawsuits, regulatory scrutiny)
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Settlements or judgments due to management decisions
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Employment practices liability (e.g., wrongful termination, harassment claims)
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Securities-related claims (for listed companies)
Coverage is structured in three parts:
Side A – Covers individual directors/officers
Side B – Reimburses the company when it defends them
Side C – Covers entity-level claims (e.g., shareholder lawsuits)
What Doesn’t It Cover?
Like most corporate insurances, exclusions include:
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Fraudulent, criminal, or intentional misconduct
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Pending or known claims before the policy starts
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Bodily injury or property damage
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Internal disputes (insured vs. insured claims)
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Fines, penalties, or illegal profits
Always review the specific policy wording.
