D&O Insurance

female board member speaking in meeting | D&O Insurance | AIB

What Is D&O Insurance?

D&O Insurance is also known as Directors and Officers Insurance and offers liability cover for managers, directors and key personnel in an organisation. It is designed to protect their personal assets from claims arising from actions and decisions taken in the course of carrying out their regular duties.

Increased corporate governance and regulatory requirements for many sectors in Australia mean that business directors are exposed to greater risks of claims being made against them by shareholders, employees, investors, regulators or other third parties. For this reason, Directors and Officers liability insurance has become an important component of many business insurance policies.

D&O Coverage

Directors Insurance offers financial protection from personal liability for actual or alleged 'wrongful acts'. It can also cover the reimbursement of an insured business in the event that they have paid a claim made by a third party to protect the director. Even if the claim is ultimately proved wrong, the cost of defending such litigation can be significant.

Directors and Officers Insurance doesn't cover intentional non-compliant acts, fraud or other criminal activity.

Is Directors & Officers Insurance Necessary For My Business?

D&O insurance isn't just a 'board of directors liability insurance' for large corporations or public companies. All organisations including public, private and not-for-profit can benefit. In fact, smaller businesses are more vulnerable to the financial impacts of litigation and not having adequate insurance protection, as they are less likely to be able to absorb any losses. If you have a board of directors or senior managers making key decisions in the management of your organisation or the presentation of financial information, we would highly recommend that you consider D&O insurance to protect your individual directors and business from financial loss.


There are a number of other small business insurance options that it is worth business owners considering, depending on the type of business that you operate. These include: 

  • Income Protection Insurance
  • Company Liability Insurance
  • Employment Practices Liability Insurance
  • Product Liability Insurance
  • Product Recall Insurance

To ensure you have the right insurance cover for your business, talk to one of our expert business insurance brokers and get the peace of mind that you have the right insurance cover, tailored to your specific needs.

Our AIB Insurance Broker team has vast experience in the complex field of Directors & Officers Insurance and can provide the cover you need. For an indicative cost of cover, without obligation, please complete and submit the short questionnaire below, we’ll provide a cost of cover quotation to you within 24 hours.