What is Not Covered in a Directors & Officers Insurance Policy?

The Directors & Officers Insurance is designed to provide protection to the executives of a company from the exposure of the management that they face on a day-to-day basis. The application of this insurance plan is broad and it ensures that they provide coverage for legal claims that can arise from various sources.

₹3 Crore insurance cover starting at ₹23,600/year⁺

Protect the board members of your company against

professional error

We don't spam

View plans

By clicking on "View plans" you agree to our Privacy Policy and Terms Of Use

Get Updates on WhatsApp

Wallet-friendly plans
24/7 claim support
IRDAI-certified advisors

The increasing competition in the insurance market means that the coverage provided by the insurance provider is constantly expanding. However, for all the intentions, a D&O Insurance policy does not cover everything some situations and occurrences are excluded from cover for different reasons. Some of these examples are mentioned below:

Known Circumstances and Claims: The main principle of the insurance is to protect unforeseen circumstances, and for this officers and directors and their insurance is no exception. A Directors & Officers Insurance plan does not provide coverage for the circumstances for which the management knows or the claim that is underway before the inception of the insurance plan. From the perspective of an insurance provider, there is no incentive to provide insurance to anybody who is going to suffer a loss as this can result in acquiring an unprofitable business.
Risks that are Covered in Other Insurance Plans: A Directors & Officers Insurance policy is intended to protect against exposures related to management and are developed as they are part of the insurance program of the policyholder. As a result, they will not provide coverage for the losses that will be covered under some other insurance plan. For instance, risks related to property damage, errors in some professional advice, and bodily injury will not be covered in it as they can easily be insured in a separate insurance plan.
Dishonest and Fraudulent Conduct: This plan is designed to offer protection to the officers and directors from decisions that they have made at the time of performance of their official duties. The policy does not cover dishonest, fraudulent, or criminal conduct. Before one denies indemnity to some executive, an insurance provider requires an assessment from formal authority or admission through the offending party. Generally, an insurance provider defends an executive as they are innocent until they are proved guilty. As per the separable provisioning of the policy, dishonest, and fraud exclusions may have a significant effect in case a non-offending executive is implicated in a claim.
When Insured Parties Sue Each Other: This policy provides comfort to the executives as they know that they have financial security and experience of the insurance company at their back when they come across a claim. However, this insurance policy generally excludes claims from an organization against its officers and directors or by one insured party against another. The reason behind this is it removes the incentive of an executive to think up an action by the company against themselves to recover the losses of the company as a result of the mismanagement. In recent times, instead of excluding all the claims bought by a party that is insured, the insurance providers are broadening the cover to exclude the consensual claims in the case when an executive has solicited or invited litigation.
Harmful Events for Insurance Providers: The insurance providers often select to limit their exposure to harmful situations. This is because the financial fallout of these situations is almost impossible to estimate. This can include risks related to nuclear events, war, and environmental damage. When we talk about D&O Insurance, the coverage can be written back in for all the claims related to environmental damage when the company is not able to indemnify the executives.
Legal Proceedings Against Company’s Entities: The Directors & Officers Insurance policy was developed solely for directors and officers however its coverage has expanded with time for covering the costs that are incurred by the company in defending its executives. The insurance is not only for the use of a claim that is made against the insurance company except for the situations of securities and employment follows legal proceedings. One more exception for this is management liability products that are developed for medium and small businesses, which can offer the ability to unite a range of insurance plans for protecting the entity of the company.
Claims that an Insurance Provider Is Not Permitted to Cover: Unfortunately, an insurance plan cannot give guarantee coverage for expenses of claims in various situations because of different legal regulations that are placed on the insurance providers and executives that they protect. An insurance provider can be able to pay the criminal penalties and fines issued to an officer or director as some of the jurisdictions prohibit insurers to provide coverage for such damages.

The Final Words!

The above areas are not covered in a Directors and Officers Insurance policy. So, if you want to file a claim keep these exclusions in mind.

Director Officers Liability Companies

View more insurers

Disclaimer: Above mentioned insurers are arranged in alphabetical order. Policybazaar.com does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Commercial Insurance Products

Group Health Insurance

Marine Insurance

Cargo Insurance

Workmen Compensation Insurance

Professional Indemnity

Fire Insurance

Shop Insurance

Comprehensive Liability Insurance

Construction All Risk

Erection All Risk

Cyber Insurance

Directors & Officers Insurance

Contractor's Plant & Machinery

Office Package Policy

Group Personal Accident Insurance

Group Life Term Insurance

Drone Insurance

We don't spam

View plans

By clicking on " Check Your Premium Now " you agree to our Privacy Policy and Terms Of Use

Director Officers Liability Insurance Articles

Popular Articles
Recent Articles

CEO Salary in India

Understanding CEO salary structures in India becomes increasingly important as you navigate the corporate...Read more

30 Jun 2025 by Policybazaar 9630 Views

CFO Salary in India

The Chief Financial Officer (CFO) plays a pivotal role in overseeing a company’s financial health, regulatory...Read more

16 Jul 2025 by Policybazaar 5289 Views

Chief Operating Officer Salary in India

The Chief Operating Officer (COO) plays a critical role in translating a company’s vision into day-to-day...Read more

08 Jul 2025 by Policybazaar 4811 Views

What is Strategic Decision Making?

Strategic decision-making is the process of choosing long-term goals and plans for a business or organisation. It...Read more

21 May 2025 by Policybazaar 1601 Views

CTO Salary in India

CTO salary in India is a hot topic for 2025, especially as technology becomes the backbone of business success...Read more

02 Jul 2025 by Policybazaar 6005 Views

VP Salary in India (2026)

Vice Presidents play a leading role in decision-making, team capability, and business outcomes. They bridge...Read more

05 Jan 2026 by Policybazaar 749 Views

Chief Compliance Officer (CCO) Salary in India

Chief Compliance Officer (CCO) is the senior executive in charge of managing an organisation’s adherence to...Read more

07 Jul 2025 by Policybazaar 4124 Views

Executive vs Non-Executive Directors: What are the Differences?

The difference between Executive and Non-Executive Directors is a subject every business owner, board member, and...Read more

19 Aug 2025 by Policybazaar 1669 Views

Chief Marketing Officer (CMO) Salary in India

The role of a Chief Marketing Officer today goes far beyond brand campaigns. CMOs are growth architects, leading...Read more

03 Jul 2025 by Policybazaar 4511 Views

What is a CEO? (Including Roles & Responsibilities)

A Chief Executive Officer (CEO) is the highest-ranking executive in a company. Tasked with steering the...Read more

28 Apr 2025 by Policybazaar 2425 Views

Chief Information Officer Salary in India

The Chief Information Officer (CIO) plays a pivotal role in shaping an organisation’s digital future. As...Read more

16 Jul 2025 by Policybazaar 2482 Views

Non-Executive Director: Roles & Duties

A Non-Executive Director is an individual appointed to a company's board who does notparticipate in daily...Read more

28 Aug 2025 by Policybazaar 1207 Views

Leadership Roles: Definition, Responsibilities, and Examples

When we think of ‘leadership,’ many of us instantly picture a person leading a group. While this is true in...Read more

30 Apr 2025 by Policybazaar 1911 Views

Chief Financial Officer (CFO): Roles and Responsibilities

A Chief Financial Officer (CFO) is the senior executive overseeing a company's financial health. As a key...Read more

14 Apr 2025 by Policybazaar 2691 Views

How to Understand Customer Needs in 4 Steps?

Understanding your customer is the foundation of lasting business success. Whether you're a startup or an...Read more

04 Jun 2025 by Policybazaar 1570 Views

What is Insider Trading?

Insider trading refers to the buying or selling of shares based...Read more

06 Jan 2026 by Policybazaar 190 Views

VP Salary in India (2026)

Vice Presidents play a leading role in decision-making, team...Read more

05 Jan 2026 by Policybazaar 749 Views

Fiduciary Duty: Meaning, Key Elements, Examples

When you hire a lawyer, trust a financial advisor with your...Read more

30 Dec 2025 by Policybazaar 246 Views

Non-Executive Director: Roles & Duties

A Non-Executive Director is an individual appointed to a...Read more

28 Aug 2025 by Policybazaar 1207 Views

Executive vs Non-Executive Directors: What are the Differences?

The difference between Executive and Non-Executive Directors is...Read more

19 Aug 2025 by Policybazaar 1669 Views

What is an Executive Director?

An Executive Director is a senior leader responsible for daily...Read more

19 Aug 2025 by Policybazaar 1046 Views

Chief Information Officer Salary in India

The Chief Information Officer (CIO) plays a pivotal role in...Read more

16 Jul 2025 by Policybazaar 2482 Views

CFO Salary in India

The Chief Financial Officer (CFO) plays a pivotal role in...Read more

16 Jul 2025 by Policybazaar 5289 Views

CHRO Salary in India

The role of the Chief Human Resources Officer (CHRO) has evolved...Read more

14 Jul 2025 by Policybazaar 3468 Views

Chief Operating Officer Salary in India

The Chief Operating Officer (COO) plays a critical role in...Read more

08 Jul 2025 by Policybazaar 4811 Views

Chief Compliance Officer (CCO) Salary in India

Chief Compliance Officer (CCO) is the senior executive in charge...Read more

07 Jul 2025 by Policybazaar 4124 Views

Chief Marketing Officer (CMO) Salary in India

The role of a Chief Marketing Officer today goes far beyond...Read more

03 Jul 2025 by Policybazaar 4511 Views

CTO Salary in India

CTO salary in India is a hot topic for 2025, especially as...Read more

02 Jul 2025 by Policybazaar 6005 Views

Chief Digital Officer Salary in India

Digital transformation is now a core business priority in India...Read more

01 Jul 2025 by Policybazaar 2871 Views

CEO Salary in India

Understanding CEO salary structures in India becomes...Read more

30 Jun 2025 by Policybazaar 9630 Views

Disclaimers⁺
⁺Premium varies on the basis of Occupancy, Business Activity & Coverage Type
By clicking on "View Plans" you agree to our Privacy Policy and Terms Of Use and also provide us a formal mandate to represent you to the insurer and communicate to you the grant of a cover.
The details of insurance coverage, inclusions and exclusions are subject to change as per solutions offered by insurance providers. The content has been curated based on the general practices in the industry. Policybazaar is not responsible for the factual correctness of these details.