phrase · also: D&O
directors and officers
In plain English
Personal liability coverage for executives and board members for decisions they make on behalf of the company.
Lawsuits against executives personally — by shareholders, employees, regulators, competitors — are surprisingly common, even at small private companies. D&O protects personal assets when those suits land.
What it covers
Side A (executives' personal exposure when the company can't or won't indemnify), Side B (the company's reimbursement for indemnifying executives), Side C (the company itself, on securities-related claims for public co's).
What it does not cover
It does NOT cover claims of bodily injury, property damage, fraud, or criminal acts. Those are GL, criminal defense, or excluded.
Where it trips people up
Private-co D&O is often confused with public-co D&O. Private has 'entity coverage' covering the company directly for employment, antitrust, and breach of contract claims — important for small businesses and nonprofits.
The technical version
Insurance protecting individual directors and officers and the corporate entity against losses arising from claims of wrongful acts in their corporate capacities.