Directors' and officers' liability (D&O) insurance
protects the personal assets of corporate directors and officers in
the event of a lawsuit or other "claim" made against them
for, among other things, an alleged breach of their duties in
managing the organization. D&O insurance directly covers
individual directors and officers for their defense costs,
judgments against them, and settlements when they cannot be
indemnified by the company, and also covers the company to the
extent it pays defense costs, judgments, and settlements as
indemnification. It may also cover the legal fees and other costs
incurred by the company as a result of a securities claim made
against the company as an entity.
