Directors and Officers (D&O) coverage provides protection to the past, present and future Directors and Officers of a corporation and those D&Os of its subsidiaries. It is available for directors and officers of public, private and non-profit companies.
This insurance covers damages or defense costs in the event a claim is brought against a director or officer (or spouse) for a wrongful act while acting as a director or officer of the corporation. Some things that can cause directors and officers of a corporation to be liable are if they damage the corporation by breaching their duties and contracts to the corporation, mix personal and business assets, or fail to disclose conflicts of interest.
Typical sources of claims include shareholders, shareholder-derivative actions, customers, regulators (including those that would bring civil and criminal charges), and competitors (for anti-trust or unfair trade practice allegations). The extent of coverage is dramatically dictated by the fact the company is publicly traded or privately held.