A Directors & Officers Liability Insurance, also known as D&O insurance, protects a company’s directors and officers against financial losses should they become the target of legal action brought by stakeholders such as customers, shareholders, workers, or vendors. This insurance covers legal fees, settlements, and other costs associated with claims of wrongdoing. By providing D&O insurance, businesses may provide their executives peace of mind and show that they are committed to risk management. This can aid in luring and keeping talented executives and board members.