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Business Insurance

What Is Directors and Officers (D&O) Insurance?

Truscott Insurance Solutions
August 1, 2026
4 min read

Directors and officers insurance, usually called D&O, protects the people who lead a company from personal liability for decisions they make in that role. It matters for any organization with a board or formal leadership, including many nonprofits.

What it covers

If a company's directors or officers are sued over their management decisions, by investors, employees, regulators, or others, D&O helps cover their legal defense and any resulting liability. Without it, those individuals could face claims against their personal assets.

Who needs it

Businesses seeking investors, companies with boards, and nonprofits with volunteer directors are common candidates. Many qualified board members expect D&O coverage before agreeing to serve.

What Truscott recommends

If your organization has leaders making decisions on its behalf, protecting them is part of good governance. Explore business insurance or start a quote.

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