Directors and Officers Liability Insurance
This coverage protects Directors and Officers of a corporation from the cost of lawsuits brought by shareholders, creditors, or employees. Most importantly however, it protects their personal assets.
D and O covers individual directors, the board, and the company as a whole. As the Directors and Officers are responsible for the day to day governance of the corporation, they are considered responsible for the corporation following the duties of compliance. There are many avenues for an adverse action, including misuse of company resources, fraud, and failure to follow workplace legislation.