Directors and Officers Liability is a form of which broader category of liability insurance?

• A. Professional Liability
• B. General Liability
• C. Property Liability
• D. Crime Insurance

Answer: (A)

Directors and Officers Liability falls under professional liability because it protects individuals who perform professional governance duties from claims arising from how they carry out those duties. The claims involve governance decisions, breaches of fiduciary duty, or errors in managing the company's affairs—risks tied to professional service and judgment. General liability covers ordinary business risks like bodily injury or property damage, not governance-related claims. Property insurance deals with physical property, and crime insurance covers theft or fraud. So, the most appropriate category is professional liability.