Call 0800 197 5515 (Mon-Fri 9am-5pm) Business Insurance

As a director or senior executive, every decision you make can potentially open you up personally to expensive claims and legal costs. We’ll work with you to ensure you have the directors and officers liability insurance cover in place to protect both your business and your personal assets.

Directors’ & Officers’ Liability Insurance – more commonly known as D&O Insurance covers the cost of compensation claims made against your business’s directors and key managers (officers) for alleged wrongful acts.

Wrongful acts include:

  • breach of trust
  • breach of duty
  • neglect
  • error
  • misleading statements
  • wrongful trading

Do you need Directors and Officers Liability Insurance?

Whilst directors & officers liability insurance is seen as not core to business operations it should be as integral to your business as any of your other insurance covers.  If your company has directors or key managers, directors’ & officers’ liability insurance can cover the cost of compensation made against them by shareholders, investors, employees, regulators or third parties.

If directors and officers do not have insurance, they face a greater risk of not being able to defend themselves against disqualification from holding the position of a director, civil proceedings which can lead to hefty legal costs and awards for damages or criminal prosecution which can lead to fines and possible imprisonment.

Premiums start from as little as £75 plus insurance premium tax.

Some claim examples

  • A director signed a company cheque but omitted the word `Limited’. The cheque was not honoured and by the time the corrected cheque was re-presented, the company had gone into liquidation. As a consequence, the managing director was held personally liable for the value of the cheque, over £30,000.
  • A former director of a company sued the current directors, alleging that they had conspired to deny him his correct pension benefits. The directors personally incurred costs of £36,000 defending the claim.
  • The company transport manager of a waste management company was prosecuted along with the Company, by the Crown Prosecution Service, following an accident involving a vehicle operated by the Company which was not roadworthy.
  • The company secretary of a group who owned a number of bars was prosecuted for short measures being served at one of the bars.
  • Two directors of a company were prosecuted by the Department of Trade & Industry who alleged that the directors were in breach of the Companies Act after their inadvertent failure to identify the company correctly on company notepaper and invoices.
  • A small shareholder in a private company took action against the directors alleging that, over a period of several years, the directors has abused their positions by paying themselves excessive salaries but paying low dividends to the shareholders. The shareholder applied to the High Court for a review of the directors’ actions and demanded that they repay over £1,000,000 to the company.
  • A fire results in the Company’s premises being destroyed. It is subsequently discovered that the Director responsible for arranging the Company’s insurances had inadvertently failed to keep the insured values up to date, resulting in a significant underpayment by the Company’s insurance for the loss. This in turn meant that the premises could not be rebuilt with the insurance proceeds alone. The other Directors decide to sue the Director responsible for insurances for the shortfall.

Please contact our dedicated helpline 0800 197 5515 to discuss your requirements or complete the Request a Call Back form and one of our team will contact you.