The Difference Between Directors and Officers and Professional Liability

I was asked recently the difference between Directors’ and Officers’ Insurance (D&O) and Professional Liability Insurance (malpractice, errors and omissions).

D&O covers management decisions.
Professional liability covers malpractice in the business you are in.
A doctor cutting out the wrong kidney is professional liability. The board of the hospital might be sued for hiring the doctor that cut out the wrong kidney – that’s D&O.