D&O- Director & Officer insurance covers for the liability of organization as well as personal liability of company director and officer of a business.

Coverage under D&O insurance

This type of general insurance is bought by businesses for protecting directors & officers from the lawsuits done by customers and vendors. It covers legal defense fees, settlements & financial losses resulting from unethical employment practices, non-compliance of regulations, reporting inaccurate data.

What D&O insurance not covers

D&O insurance excludes coverage of losses due to fraud, criminal activity, lawsuit between managers of same company.

Additionally it also protects companies from not paying any claim in case any existing or previous director and officer sues the company.