Insurance FAQ’s: What is Directors and Officers Liability Insurance?

If you own a business, you should consider Directors and Officers Liability Insurance. But what is it? 

Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company.

As a director or an officer for either a pro-profit or non-profit organization, you are unfortunately at risk of being sued for wrongful decisions or actions while you are in this role. If this were to happen to you (and you did NOT have D&O insurance) you could be personally responsible for paying the bill on any settlements or judgements against you. The high costs of litigation could easily bankrupt most people. Don’t risk it. If you’re a Director or Officer, you need D&O Liability coverage.

Did you know that D&O Insurance can also…?

  • Protect your business against financial losses from lawsuits involving its directors and officers
  • Help attract and retain top talent who want to work for a company that cares about protecting their directors and officers
  • Ease your mind knowing that you and your business is protected in the event of a lawsuit

It’s a common misconception that D&O claims happen only to large, public companies. In fact, recent studies have shown that public, private, and non-profit companies ALL face D&O litigation risks.

Any business with a corporate board or advisory committee should consider investing in D&O insurance, including non-profit organizations. Your company does not have to make tens of millions of dollars for your directors and officers to be personally sued over their management of company affairs. In fact, smaller businesses with fewer assets usually need the protection just as much as large corporations.

We’d love to talk to you about the specific risks your businses faces and how we can help you protect it. Every one of our protection advisors is an expert in business insurance. Contact us here and let’s get started!

A little more about Holley Insurance…

Holley Insurance was founded in 2000, and retains a core base of loyal clients. We have locations in Roanoke, Rocky Mount, and Forest, VA. As an independent insurance agency, Holley Insurance represents a carefully selected group of financially strong, reputable insurance companies. Therefore, we are able to offer you the best coverage at the most competitive price. Holley Insurance was named “Top Insurance Broker in Southwest Virginia” by Virginia Living Magazine for 2021. If you’re interested in starting a quote online or having us take a look at your current policies, click here!


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Are you ready to save time, aggravation, and money? The team at Holley Insurance is here and ready to make the process as painless as possible. We look forward to meeting you!