Directors and Officers Liability Insurance (D&O insurance) is a vital policy that protects a company’s directors and officers from personal financial loss in the event they are sued for alleged wrongful actions carried out during the course of their work. This insurance helps cover legal defense costs, settlements, and damages that may arise from claims of mismanagement, breaches of fiduciary duty, errors, and omissions. D&O insurance also extends coverage for regulatory investigations and lawsuits from shareholders or other parties.