Directors and officers liability insurance

Defense for C-suite officers and board members who are sued for making company decisions.


What is directors and officers liability insurance?

Directors and officers liability insurance, also known as D&O insurance, is a liability insurance designed to protect directors and executives if they get sued for their role in a business or organization.

This insurance covers the personal assets of directors and company officers in case they are sued.

What can D&O insurance cover?

Directors and officers liability insurance helps mitigate financial risks associated with these roles. This policy typically covers legal bills, settlements and other costs connected to defending against a lawsuit these individuals may face.

  • Breach of fiduciary duty: Claims alleging that directors or officers failed to act in the company’s best interest, such as mismanagement of assets or neglect of responsibilities.
  • Misrepresentation: Lawsuits involving giving out false or misleading information that affects stakeholders like investors or employees.
  • Non-compliance with laws and regulations: Claims arising from the company’s failure to comply with legal or regulatory standards, including labor, environmental and financial regulations.
  • Employment practices liability: Employee allegations for discrimination, harassment, wrongful termination or other employment-related disputes.
  • Bankruptcy-related claims: In cases of a company’s insolvency, claims from creditors or bankruptcy trustees alleging mismanagement or wrongful actions leading to the company’s financial downfall.
  • Shareholder actions: Lawsuits filed by shareholders alleging mismanagement, abuse of authority or decisions that negatively impacted the value of their shares.

D&O liability insurance vs. General Liability vs. Professional Liability

Directors and Officers liability insurance is not the same as general liability or professional liability insurance. While all three types of insurance involve liability coverage, they serve different purposes and protect against different risks.

General liability insurance typically covers claims related to bodily injury, property damage, and advertising or personal injury. It’s designed to protect businesses from third-party claims arising from accidents occurring on their premises or as a result of their operations.

Professional liability insurance, also known as errors and omissions insurance, is specifically tailored to protect professionals against claims of negligence, professional mistakes, or misrepresentation in their services.

On the other hand, D&O insurance focuses on protecting directors and officers of a company from personal liability arising from alleged wrongful acts or negligence in their roles. It covers claims made by shareholders, employees, customers, competitors, or regulatory bodies related to decisions or actions taken by directors and officers in their official capacities.

While there may be some overlap in coverage, each type of insurance serves a distinct purpose and addresses different aspects of liability.

NEXT is not able to provide D&O liability coverage at this time, however, we’re still able to offer general liability, professional liability and employment practices liability insurance (EPLI).

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Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.
General Liability insurance
General Liability
Protect yourself from accidents that cause physical injury or damaged property.
Professional Liability or Error and Omissions Insurance
Professional Liability/E&O
Shield yourself from lawsuits that claim your work errors caused financial losses.
Workers' Compensation Insurance
Workers’ Compensation
Cover medical bills and lost wages if your employees have an accident at work.
Commercial Auto Insurance
Commercial Auto
Stay on the road with coverage for dents, tows and damage to someone else’s vehicle.
Tools & Equipment Insurance
Tools & Equipment
Upgrade your general liability coverage to protect any gear that’s stolen, damaged or lost.
Commercial Property Insurance
Commercial Property
Keep your building, inventory and equipment protected from fire or water damage.
Business Owner’s Policy Insurance
Business Owner’s Policy
Combine general liability and commercial property into one policy to protect your business.
* To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.
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Issuance of coverage is subject to underwriting. Not available in all states. Please see the policy for full terms, conditions and exclusions. Coverage examples are for illustrative purposes only. Your policy documents govern, terms and exclusions apply. Coverage is dependent on actual facts and circumstances giving rise to a claim. Next Insurance, Inc. and/or its affiliates is an insurance agency licensed to sell certain insurance products and may receive compensation from insurance companies for such sales. Policy obligations are the sole responsibility of the issuing insurance company. Refer to Legal Notices section for additional information.

Any starting prices or premiums represented before an actual customer quote are not guaranteed and are representations of existing premiums of active policies as of December 6, 2023. To the extent permitted by law, applicants are individually underwritten, not all applicants may qualify. Individual rates and savings vary and are subject to change. Discounts and savings are available where state laws and regulations allow, and may vary by state. Certain discounts apply to specific coverages only.