Often called D&O, this insurance is payable to the organization or the directors and officers of an organization, as indemnification (reimbursement) for losses suffered by an insured as a result of a legal action brought against the directors and/or officers for alleged wrongful acts. Defense costs can be included in the insurable limit or outside of the limits of insurance on the policy. There are three insuring clauses in a traditional D&O policy.
Provides coverage to individual directors and officers when not indemnified by the organization.
Provides coverage to the organization when it indemnifies the directors and officers.
Provides coverage to the organization itself for claims brought against it.