Directors & Officers Liability Insurance (D & O)

“Directors and Officers Liability Insurance (AKA Errors and Omissions insurance, E&O for short) is a type of commercial liability insurance covering Directors and Officers for claims made against them while serving on a Board of Directors and/or as an Officer.”*
It protects your business against claims arising from your negligent acts or your failure to provide the level of advice or service the plaintiff expected.

Protects against lawsuits for:

  • Public companies – Shareholders filing suit for financial difficulties, creditors, customers or clients and competitors.
  • Non-Profit companies – Generally related to employment actions and practices.
  • Private companies – Often brought on by competitors or customers for alleged fraudulent or deceptive practices.

Regardless of whether an accusation is warranted or not, it will take time and financial resources for response to the claim.  On a case-by-case basis. It is worth a discussion with your insurance agent to confirm if your business is susceptible to a lawsuit for your company where Directors and Officers insurance would be of benefit to minimize risks.



Lawsuits Are Not Cheap – $35K to $100K is the cost to defend a lawsuit. $475K is the average payment for an adverse judgement.