Directors & Officers Liability Insurance

Directors & Officers Liability Insurance covers the cost of compensation claims made against individual directors &/or key managers for alleged wrongful acts.

Wrongful acts of Directors and Officers  include:-

    • Breach of trust
    • Breach of duty
    • Neglect
    • Errors
    • Misleading statements
    • Wrongful trading

Directors & Officers Liability Insurance covers the cost of compensation claims made against individual directors &/or key managers for alleged wrongful acts.

Do we need it?
If your company has directors or key managers, directors’ and officers’ liability insurance can cover the cost of compensation claims made against them by shareholders, investors, employees, regulators or third parties.

Directors and officers have specific duties, responsibilities and powers relating to their positions. These are usually set out in their job description or terms of reference. If a director or officer of your company is found to have acted outside of 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.

In absence of insurance directors and officers face a greater risk of not being able to defend themselves against:

Disqualification from holding the position of director
Civil proceedings which can lead to hefty legal costs and awards for damages
Criminal prosecution which can lead to fines and possible imprisonment

What does it cover?
Claims made against individual directors & offers by third parties including regulators, creditors, shareholders and investors. These claims can be made in relation to wide cross section of subject matters including breaches of legislation, insolvency, trading, health & safety.

What are the main extensions of cover available?
There are many but the main two are:

Corporate legal liability/Entity coverage extends the policy to include not only individual directors & officers but also the company as well.
Employment practices liability insurance can be bought as an extension of directors’ and officers’ liability insurance. It covers employee discrimination claims, e.g. for unfair dismissal, harassment, or failure to promote a person.

Get a quote now just click here