The Director and Officer’s Liability Insurance often causes more opportunistic behavior when information is asymmetric, then risk expectations and audit fees from auditors will be influenced. Using the data of Chinese listed companies between 2007—2016 as samples, this paper studies the influence on the audit fees after the introduction of D&O insurance. The study reveals that the introduction of D&O insurance will increase audit fees. Furthermore, low level of marketization process and high level of earning management will strengthen the positive relationship between the introduction of D&O insurance and audit fees. We also test the relationship between D&O insurance and litigation risks, and find out they are positively associated. This reveals that auditors charge high audit fees to the corporations which introduced D&O insurance for facing high litigation risks.