Do you need Directors' and Officers' Insurance? It is commonly referred to as "D&O Insurance." The major purpose of D&O Insurance is to protect directors and officers of a corporation from liability in the event of a claim or lawsuit against them asserting wrongdoing in connection with the company's business. Once you start to rely on others — e.g., a Board of Directors and professional managers — to run your business, D&O Insurance becomes desirable. D&O Insurance basically protects against liability claims from people who allege that in conducting the business of the corporation, the directors and officers breached a legal duty to them. Essentially, D&O Insurance can provide protection for claims that result from errors