Directors and officers (D&O) insurance,

Definition of Directors and officers (D&O) insurance:

1. Personal liability insurance that provides general cover to a firms directors and senior executives. Paid usually by the firm, it reimburses (in part or in full) the costs resulting from law suits and judgments arising out of poor management decisions, employee dismissals, shareholder grievances, and other such acts committed in good faith. Criminal offenses are not covered under this insurance.

How to use Directors and officers (D&O) insurance in a sentence?

1. You should make sure that there is a good directors and officers insurance offered so that you can hire the right people.
2. One of the perks of being a senior executive was having directors and officers insurance. We were covered incase of a lawsuit was filed against us because of the companies actions.
3. Prior to accepting an officers position with XYZ company, I needed to be certain that they provided Directors and Officers Insurance in the event of litigation.