Directors and Officers Insurance, also known as D&O Insurance, is insurance liability coverage designed to protect individuals in management positions—and sometimes also the company they work for—from personal losses if they are sued. The suit is generally a result of serving as a director or officer for a private business, public company or nonprofit organization. Depending on the kind of coverage, D&O Insurance protects individuals when their company can not or will not indemnify them, protects the company when it does indemnify its directors/officers, and protects the corporation and its directors/officers if both parties are involved in the suit. Â