What Insurance Covers Directors?

Directors and officers (D&O) liability insurance is generally the coverage line to examine for management claims against insured directors or officers. The policy responds only when its insuring agreement, definitions, and covered-cause requirements are satisfied; the line name by itself does not establish that a loss qualifies. D&O coverage is tied to wrongful acts in an insured director’s organizational capacity, not every personal or business activity of a person with that title.

Common exceptions include exclusions, sublimits, deductibles, and conditions specific to the insured property, claimant, or event. Different forms can treat closely related losses differently, so a quote summary or certificate is not enough to establish the complete terms. The policy and endorsements control.

For this exposure, check insured capacities, entity coverage, exclusions, shared limits, and claims-made reporting. Ask the broker to point to the applicable grant and exception in the actual form, and verify who is insured, the policy period, limits, and claim-notice steps.