Directors and Officers (D&O) liability insurance is a form of errors and omissions insurance covering the directors and officers of corporations against suits alleging they committed wrongful act(s).
D & O coverage is used to provide for “Wrongful Acts” of a director or officer. An example of a policy definition of wrongful acts is as follows: “Wrongful Act” means:
As with all policies there are exclusions in the form. Please read your policy for the specifics of your coverage.
Only D&O covers the Wrongful Acts of the Directors and Officers. Directors and Officers are being held to a higher standard by the legal community, governments, both State and Federal, and Consumerism.
D&O does not cover civil or criminal fines or penalties imposed by law, nor does it cover punitive or exemplary damages, or taxes or matters deemed uninsurable under the law to which this Policy shall be construed.