Being a company director or officer makes you vulnerable to allegations of wrongful acts when doing your job. Directors and officers (D&O) liability insurance is an insurance coverage intended to protect individuals from personal losses if you are sued as a result of serving as a director or an officer of a business or other type of organization. It can also help reimburse a business or nonprofit for the legal fees or other costs incurred in defending such individuals against lawsuits. 'Wrongful Act' can includes mistakes or suspected mistakes, negligence of violations of duties and powers, false or misleading statements, defamation, violations of labor practices, etc.

That way, you can focus on running the company instead of worrying about or dealing with prolonged litigation with a host of third parties – from shareholders to customers. D&O Insurance applies to anyone who serves as a director or an officer of a for-profit business or nonprofit organization at any size.