Directors and Officers Insurance 

Explore Directors and Officers Insurance for Legal & Financial Protection 

Business decisions made by leadership carry real legal and financial risk. D&O insurance (Directors and Officers insurance) protects company leaders from personal liability tied to claims of mismanagement, breach of duty, or regulatory issues. Whether you run a startup, nonprofit, or corporation, directors and officers liability insurance helps safeguard your executive team and your organization’s future. 

What Is D&O Insurance?

D&O insurance, also called directors and officers insurance, is a liability policy that protects company leaders and the company from financial losses caused by lawsuits related to management decisions. Directors and officers liability insurance helps cover legal defense costs, settlements, and damages when claims allege wrongful acts, errors, or mismanagement¹. 

Who Directors and Officers Insurance Covers  

D&O insurance protects individuals and organizations involved in leadership roles, including: 

D&O insurance may also provide protections for managers and company leadership.

What Directors and Officers Liability Insurance Covers 

D&O liability insurance applies to lawsuits tied to leadership actions and decisions and commonly covers: 

• Legal defense and attorney fees 

• Settlements and court judgments 

• Breach of fiduciary duty claims 

• Misrepresentation or misleading statements 

• Employment-related claims involving management decisions 

Why D&O Insurance Is Important 

D&O insurance helps protect leaders and businesses from costly legal risks by: 

• Protecting personal assets of directors and officers 

• Reducing the financial impact of management-related lawsuits 

• Helping attract and retain experienced leadership 

Industries That Commonly Need D&O Insurance 

D&O insurance is commonly used by businesses and organizations where owners, directors, or executives make financial, operational, or people-related decisions that could lead to lawsuits. 

• Professional services businesses such as consultants, accountants, architects, and real estate professionals 

• Healthcare and wellness organizations including group practices, clinics, and wellness companies with leadership teams 

• Retail and e-commerce businesses, especially growing brands with managers, investors, or boards 

• Manufacturing businesses with executive decision-making and regulatory exposure 

• Marketing, media, and technology companies with client contracts, hiring decisions, and intellectual property risk 

• Nonprofits, associations, and foundations with boards of directors 

• Construction and facility services companies with ownership structures or executive leadership 

• Food and beverage businesses operating at scale or with investors and management teams 

Get D&O Insurance 

Your Gild Insurance Agent is here to understand your business and find the right coverage tailored to your needs.

For a free, online quote in minutes, try out Gildber! The fast, hassle-free option for a business insurance. 

Frequently Asked Questions

What is Directors and Officers (D&O) insurance?

Directors and Officers insurance protects company leaders from personal financial loss if they are sued for decisions made while managing the business. It helps cover legal defense costs, settlements, and certain claims tied to leadership actions.

Who does a D&O policy cover?

A D&O policy typically covers directors, officers, board members, and executives. Some policies may also extend coverage to managers or committee members, depending on how the policy is structured.

How much D&O insurance coverage do we need?

The right amount of D&O coverage depends on your business size, industry, leadership structure, and risk exposure. Companies with investors, boards, or rapid growth often need higher limits to protect decision-makers from costly legal claims.

What does D&O insurance cover and what does it not cover?

D&O insurance can cover claims related to mismanagement, breach of fiduciary duty, or employment-related decisions. It generally does not cover intentional wrongdoing, fraud, or illegal acts, which are excluded from coverage.

1. https://www.iii.org/article/directors-and-officers-insurance ↩︎