Directors and officers (D&O) insurance is a type of insurance policy designed to protect directors and officers of a company from claims of wrongful acts or breaches of duty. This type of insurance policy provides coverage for a range of risks that may arise from the performance of their duties, including legal fees, judgments, and settlements.

D&O insurance policies can provide coverage for a variety of types of organizations, including publicly traded companies, private companies, and non-profit organizations. The policy may cover claims related to a variety of areas, such as breach of fiduciary duty, securities violations, and employment practices.

The cost of D&O insurance can vary depending on a variety of factors, such as the size and scope of the organization, the level of risk associated with the organization, and the amount of coverage needed. Companies should work with an insurance agent to determine the appropriate coverage and obtain a policy that meets their specific needs.

To minimize the risk of claims of wrongful acts or breaches of duty, directors and officers should take steps to ensure that they act in the best interests of the organization and its stakeholders. This may include conducting thorough research and due diligence, implementing governance procedures, and maintaining accurate records.

Overall, D&O insurance is an important component of any organization's risk management strategy. By obtaining coverage and taking necessary precautions, directors and officers can protect their reputation and minimize the financial impact of any potential claims that may arise.