Directors & Officers (D&O) insurance is a type of liability insurance that protects the directors and officers of a corporation from personal financial losses arising from lawsuits, claims, or legal proceedings brought against them in their official capacity.

Coverage typically includes:

• Defence costs: Legal fees, expert witness fees, and other expenses incurred in defending a lawsuit or claim.
• Settlements or judgments: Amounts paid to settle or satisfy a judgment against a director or officer.
• Side A coverage: Coverage for claims against individual directors and officers, even if the corporation is not involved in the lawsuit.
• Side B coverage: Coverage for claims against the corporation that are also brought against individual directors and officers.
• Entity coverage: Coverage for claims brought directly against the corporation.

D&O insurance is important for corporations because it can help protect their directors and officers from personal financial ruin if they are accused of wrongdoing. It can also help to deter lawsuits by providing a source of funds to defend against claims