Directors and Officers Liability Insurance

Directors and Officers Insurance (typically referred to as D&O Insurance) is business liability insurance written to protect the Directors and Officers of for-profit businesses, privately held firms (such as hedge fund and investment firms), not-for-profit organizations, and educational institutions. 

D&O Insurance can reimburse a customer for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. Such coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are brought against directors/officers simultaneously. Intentional illegal acts, however, are typically not covered under D&O policies.