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Liberalization, privatization and globalization have opened new vistas for insurance industry. Some of the insurance products, which had low profile before liberalization, such as the Director’s & Officer’s Liability Insurance (D&O) and insurance against terrorism risks, have gained momentum in the new insurance regime. The directors are the agents of shareholders of a company. In administration and management of a company, they play a multidimensional role. In the process of administrative actions and corporate management, some of the actions and decisions initiated, may directly or indirectly influence the working of the company and the company may face financial and non-financial risks. The company may incur liabilities to the various parties who suffer a loss because of the actions and decisions of the company and its directors and officers. The directors or officers may get protection to a certain extent under the provisions of various laws. They may incur liabilities as some of the decisions taken in good faith may fail and they may be asked to compensate the losses. At this point of time, the insurance policies covering the risks of liabilities of Directors and Officers come to the rescue of the companies. Terrorism is one of the burning issues of socio-economic factors and poses a challenge to the government. Every society, across the globe has either experienced the risk of terrorism or is under a threat in one or the other shape. Insurance companies have designed some policies to secure property and persons against terrorism risks.