Directors & Officers Cover
Directors’ and officers’ liability insurance or D&O insurance covers the financial cost of compensation claims made against your firm’s directors and officers for alleged wrongful acts. Such acts may include:
Do I need it?
Directors’ and officers’ liability insurance can cover the cost of compensation claims made against company executives by shareholders, investors, employees, regulators or third parties.
Usually directors and officers have specific duties, responsibilities and powers relating to their positions which are nset out in their job description or terms of reference. If a director or officer of your firm is found to have acted outside their terms of reference, civil, criminal or regulatory proceedings can be brought against them.
Directors’ and officers’ liability insurance covers the cost of defending these proceedings, as well as any compensation costs that arise from an unsuccessful defence.
If directors and officers do not have insurance, they face a greater risk of not being able to defend themselves against:
What it covers
Directors’ and officers’ liability covers those claims made by the following:
It may also cover claims brought in relation to:
Employment practices liability insurance can be bought as an "add on" or extension of directors’ and officers’ liability insurance. It covers employee discrimination claims such as unfair dismissal and harassment.
Directors’ and officers’ liability sometimes covers defence costs due to criminal and regulatory investigations into your company where no actual wrongful act has been alleged against a director. The specifics of cover will vary from insurer to insurer.
What isn't covered
Directors’ and officers’ liability does not cover claims made against your company as a whole, only those made specifically against individuals for alleged wrongful acts carried out in their capacity as directors or officers.
You can buy directors’ and officers’ liability insurance directly from us and other brokers, as well as direct from insurers.
For more information call us on 01633 213063 or email us using the form below: