Protection for leadership decisions

Directors & Officers Insurance

Directors & Officers (D&O) Insurance protects the personal assets of your company's directors and officers — and the business itself — when they're sued over decisions made in their leadership roles. Claims come from investors, employees, customers, competitors, or regulators alleging mismanagement, breach of duty, or misrepresentation. Without it, leaders can be held personally liable.

Who needs Directors & Officers (D&O)?

Companies with a board of directors or advisory board
Startups raising outside investment
Nonprofits with volunteer board members
Businesses with shareholders or investors
Companies recruiting executives, who often require it
Any organization making consequential leadership decisions

What's covered

Breach of Duty

Claims alleging directors or officers failed to meet their fiduciary duties to the company or stakeholders.

Mismanagement

Allegations that leadership decisions were negligent and caused financial harm.

Misrepresentation

Claims of misleading or inaccurate statements made to investors or other stakeholders.

Regulatory Defense

Legal costs to respond to investigations and actions brought by regulators.

Personal Asset Protection

Coverage that shields the personal finances of directors and officers from covered claims.

What's not covered

Fraud or illegal personal profit
Bodily injury and property damage (covered by General Liability)
Claims known before the policy started
Fines and penalties (in many policies)
Disputes strictly between insured parties (depending on policy)
Employment claims (covered by EPLI, though sometimes bundled)

Examples by industry

Health & Beauty

A spa franchise's board is sued by investors over an expansion decision; D&O protects the directors' personal assets.

Food & Restaurants

A restaurant group's investors allege leadership misrepresented finances; D&O covers the defense and any settlement.

Cleaning & Maintenance

A cleaning company's board faces a mismanagement claim from a part-owner; D&O pays the legal defense.

Professional Services

A consulting firm's partners are sued by a shareholder over a major decision; D&O protects their personal finances.

Retail & E-commerce

A retail chain's directors are sued by investors after a failed rollout; D&O covers the leadership-decision claim.

Transportation

A logistics company's board is named in a suit over a strategic acquisition; D&O handles the defense.

Technology

A startup's founders are sued by investors over projections in a funding round; D&O covers defense and settlement.

Home Services

A growing contractor's board faces a mismanagement claim from an investor; D&O protects the directors.

Creative & Media

A media agency's leadership is sued by a stakeholder over a controversial decision; D&O covers the claim.

Real Estate

A brokerage's board is sued by investors over a fund decision; D&O protects their personal assets.

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Part of the Knack guide

Learn Directors & Officers (D&O) alongside every other coverage in our full guide.

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