Directors and Officers Insurance
We understand the duties corporate directors and officers face and will source suitable cover to help mitigate their risks and plan out a trust worthy, suitable risk management.
Defending directors and officers against damaging claims.
It is often believed that a director of a business does not have any liability regarding their corporate business actions, after all, most businesses have some form of public liability insurance. The truth is, that while the company can be covered with public liability protection and other related business insurance, the individuals who work within the company are left unprotected if a person acts improperly and does something wrongful.
We understand the duties corporate directors and officers face and will source suitable cover to help mitigate their risks and plan out a trust worthy, suitable risk management. To ensure we provide the right level of D&O insurance, we will consider what to include based on factors such as turnover of the company, business activities, sector, number of employees and more.
Our directors and officers insurance policy coverage includes:
- Up to £5m Directors and Officers Liability Insurance
- Past, present and future Directors covered as insured persons
- Any One Claim settlement basis
- Employment practices liability cover for the company
- Liability insurance cover for the company
- Broad definition for actual or alleged Wrongful Acts
- What is Directors and Officers Liability Insurance?Directors and officers insurance is a type of insurance policy which provides a financial defence for a group such as business director, partners and officers (usually in managerial roles). This type of insurance covers the part of the claims for compensation made against the insured individuals, rather than the company as a whole.
Directors, partners and officers within a company have many responsibilities, to their employees, members of the public and their shareholders or investors. These responsibilities can sometimes expose the individual to liability for actions they make which may affect company health. This can mean they are personally subject to claims which can lead on to fines, compensation or prison sentences. - Who needs D&O insurance policies?If your company has directors, or key managers, then directors and officers insurance would be a good defence against a personal liability claim case and the cost of financial compensation. D&O liability insurance also covers the group of individuals for the cost of defending within official proceedings such as court hearings or prosecution in the most serious cases.
D&O insurance can cover claims made by regulatory bodies, shareholders and investors and creditors. It can also cover claims brought in cases of breaching European legislation as well as insolvency. Get your quote for SME insurance and D&O cover with PIB insurance brokers today. - What does a directors and officers insurance policy cover?There is a key difference with directors and officers insurance compared to other business insurance policies. A directors and officers insurance policy will cover the individuals against claims for compensation, rather than the company as a whole. This can be beneficial for the directors, partners and officers within a business who have many different responsibilities which can be exposed to personal liability for actions they make which can affect the company.
- Do I need directors and officers insurance?
Any business which has directors, key managers or partners can find D&O insurance to be a beneficial policy to hold. It covers individuals for the financial cost of defending against claims and legal proceedings such as court hearings or even prosecution. Claims can be made by a wide range of bodies, from shareholders and investors through to regulatory bodies and creditors.
Examples below:-
Defence costs incurred as a Director: for example, a shareholder pursues legal action following alleged payment of excessive salaries at the expense of low dividends to shareholders.
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Civil fines and penalties: a Senior Account Officer could be fined by HMRC if they fail to take reasonable steps to ensure the company takes adequate accounting arrangements. A fine could run into the thousands.
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Corporate manslaughter or killing: if a driver of a company fell asleep and injured or killed other motorists, an operations manager could potentially be liable if it was deemed controls weren’t in place to ensure the driver adhered to regulations.
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Crisis and PR management: a customer who allegedly bought expired foods from a supermarket, and consequently suffered severe food poisoning, threatened to go to the media and instigate litigation. As the directors were at risk from reputational damage and an investigation from HSE, they appointed a public relations consultant and lawyer to help limit the adverse publicity.
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- Is directors and officers insurance the same as professional liability?Directors and Officers insurance is a form of professional liability insurance which actually goes a step further. As well as covering the liability of directors and officers as individuals, it also covers the liability of the company to compensate its directors for the expenses incurred defending any claims made. Professional liability cover is normally to protect businesses and individuals against the cost of defending negligence claims.
- Why is directors and officers insurance important?D&O insurance is a highly valuable policy to hold, as it helps to protect the personal assets of corporate directors and officers as well as their spouses in the event they are sued by employees, competitors, investors or other parties for actual or alleged wrongful acts while managing their company. There can be a great deal of reasons directors may have a claim taken against them, so this policy can really protect the livelihood of directors!
- How much directors and officers insurance do I need?The amount of insurance and the costs for the cover can vary substantially depending on the size of the business, the coverage required, your industry, revenue, debt and legal history. The best way to establish how much insurance is required is to speak to one of our expert team today. We can help you to choose the right level of cover to suit your needs as well as your budget. To find out more about cost, Get a Quote or Request a Call Back from our team.