Protection from the top down - Directors and Officers Liability Insurance
Directors and Officers Insurance protects the personal assets of corporate directors and officers in the event they are personally sued.
Director and Officers claims are not likely to be covered by other liability policies. So, if a claim is made against a director or company for being in breach of their duties, they may not be protected without this type of insurance and will be personally liable to defend the claim.
It can be extremely costly to cover the legal expenses related to defending any allegations made.
D and O insurance provides peace of mind, no matter what the size of the company.
Directors and officers can be sued for their actions in many different company roles. For example, misuse of company funds, failure to comply with legislation on employment rights and workplace requirements, actions leading to financial losses or bankruptcy.
It’s not just employees that can sue directors and officers for breach of their duties or employment practice claims, but competitors, customers, investors...the list goes on.
D&O insurance will cover legal fees, settlements, and other costs. The insurance often extends to protect the company in addition to its directors and officers.
Things can go wrong, mistakes can inadvertently be made in small companies just as in large companies. In smaller companies directors are likely to be more accessible and known to more clients. Don’t think that D&O is only for the big corporates…
D&O insurance could be an important addition when it comes to attracting high calibre directors and senior officers to your company
People seeking to join companies in senior positions know the potential risks they could be open to in leadership roles. They may look for businesses that are prepared to invest in protecting their employees. You don’t want to find yourself in a position where your preferred candidate is put off by not being able to avail of D&O insurance.
Worth the investment?
As a director, you go to great lengths to make sure that your business is fully insured for all its various operations and responsibilities. With various policies in place you might think that this would cover your directors and officers.
Think again. Personal claims against directors and officers will not be protected under other liability policies.
Given the costs associated with defending claims that can run to thousands of pounds you might think that D&O insurance would be unaffordable. But, it could cost you as little as £20 a month.
Call our specialist business insurance team to discuss this valuable protection.