What is Directors & Officers Liability?
D&O Liability covers legal defence and settlement costs arising from claims against directors and officers for alleged wrongful acts, mismanagement, breach of fiduciary duty or regulatory non-compliance.
Who needs it?
- Startups raising institutional capital (most term sheets require it)
- Listed companies
- NGOs and trusts with active boards
- Companies with foreign shareholders / regulatory exposure
Why it matters
Personal asset protection for directors
Legal defence costs covered globally
Investigation cost cover
Outside board service extension available
Common myths, busted
Myth: Indemnity from the company is enough.
Truth: Company indemnity is suspended in insolvency or shareholder derivative actions — exactly when D&O matters most.
Real claim examples
- ₹65 L legal defence covered for a startup founder in a shareholder dispute.