D&O vs. E&O – At a Glance

Directors & Officers (D&O) –

Shields personal assets of directors, officers, and often the company itself from lawsuits alleging wrongful managerial acts (breach of fiduciary duty, mismanagement, regulatory violations). It helps attract top talent by covering legal costs and settlements tied to board‑level decisions.

Errors & Omissions (E&O) –

Also called professional liability, it protects service‑providers (consultants, advisors, IT pros, etc.) against claims of negligence, mistakes, or missed deliverables that cause client losses. Covers defense fees, settlements, and sometimes regulatory fines.

D&O safeguards the leadership team and the corporation; E&O safeguards the firm’s professional services.

Knowing which you need lets you pick the right coverage.