# Directors and Officers Liability

_Glossary_

Canonical: https://www.claimspages.com/learn/glossary/directors-and-officers-liability/

Coverage for personal liability of corporate directors and officers for alleged wrongful acts in managing the organization.

D&O insurance protects individual leaders when shareholders, regulators, or others allege breach of fiduciary duty, misrepresentation, or regulatory violations. Side A may protect individuals when the company cannot indemnify; Side B reimburses the company for indemnification; Side C is sometimes entity coverage for securities claims.



Shareholders sue directors alleging misleading financial disclosures; D&O pays defense and settlement subject to exclusions for fraud.