Directors and Officers Liability Insurance provides financial protection for the directors and officers of a company in the event they are sued in conjunction with the performance of their duties as they relate to the company.

Directors and Officers Insurance is different from Errors and Omissions Insurance. While Errors and Omissions policy provides protection against performance failures and negligence in terms of products and services, Directors and Officers Insurance policies provide protection against performance and duties of management.

Businesses should carry both directors and officers insurance as well as errors and omissions policies.