Directors and Officers liability insurance is insurance against compensation for errors or negligent misconduct generated by the company's directors, supervisors and senior staff in the exercise of their duties. This paper studies the relationship between Directors and Officers liability insurance and financing constraints with the Directors and Officers liability insurance data, which was collected manually. This paper found that, compared with companies that did not purchase Directors and Officers liability insurance, companies which purchased directors' liability insurance had a higher degree of financing constraints. The positive relationship between Directors and Officers liability insurance and financing constraints was mainly reflected in non-state-owned enterprises, boarder and CEO are the same person and regions with low marketization. Those studies are still robust after passing a series of endogenous tests. The research of the thesis has important practical significance for the application of directors' liability in the capital market.