There are several decisions that managing directors and senior executives make that can lead to losses due to uncertain environment or other issues. However, shareholders or others impacted by their decisions could approach the courts for redressal. In such circumstances, both the company and the individual needs to be adequately armed with legal protection.
Passport D&O is a policy for individuals designed to protect your professional and financial wellbeing in your capacity as a company Director or an Officer.
While a D&O policy is not mandatory, it's a recommended line of insurance.