directors’ and officers’ insurance – n : a.k.a. D&O insurance; a type of insurance policy whose purpose is to protect a company’s directors (i.e., members of the board of directors) and corporate officers (i.e., CEO, CFO, Secretary, etc.) from personal liability while discharging their duties on behalf of the company.

Example: Because ABC Corp. purchased a D&O insurance policy in 2003, when, in 2004, a disgruntled shareholder sued not only the company but also ABC’s individual directors, CEO and CFO, the personal assets of those individual defendants were protected by the company’s D&O policy (to the extent of its coverage).

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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