Directors and Officers Liability Insurance

Directors & Officers Liability or D&O Insurance protects company leaders against claims arising from decisions made in their managerial roles. It works across three areas - Side A, which covers directors personally when the company cannot indemnify them; Side B, which reimburses the company when it does indemnify its directors; and Side C, which protects the company itself in securities-related cases (relevant mainly for listed firms). While SEBI LODR makes D&O cover mandatory for independent directors of listed companies, it is equally relevant for private firms, startups, and even NGOs, where directors can face lawsuits from regulators, shareholders, employees, creditors, or customers.