In the light of the recent cases of financial fraud and claims of bankruptcy made by organizations, many companies are showing an interest in insurance policies that will cover the liabilities of officers and directors. This insurance policy is known as Directors and Officers (D&O) Liability Policy. Overview The directors and officers of corporations are answerable to their shareholders, employees and the public and a wrong decision poses the risk of civil or criminal action against them. A D&O policy covers a wide range of civil and criminal actions that can be taken against directors and officers. This policy protects against legal claims as a result of wrongful actions by directors and officers while performing their duties. These wrongful acts can include errors, omissions, misleading statements, breach of duty or their neglect. The policy covers any losses that the insured may face due to any legal action for any wrongful acts committed by them. It also covers