A directors and officers policy provides the directors and officers of a private company or nonprofit organization protection in the event a breach of duty is alleged. The coverage pays for actual or alleged wrong decisions, which the policy refers to as wrongful acts. Each insurance company provides its own definition of the coverage in its coverage form.
Directors & Officers (D&O) Insurance provides protection against a breach of duty by the directors and officers of a private company or a non-profit organization. It pays for actual or alleged wrong decisions referred to as wrongful acts in the policy. Each insurance carrier will define their coverage differently in their coverage form.