Directors’ and Officers’

Directors’ and officers’ (D&O) insurance covers a business’ directors and officers (key managers) for the costs of compensation claims for alleged wrongful acts. This can include breaches of trust or duty, neglect, misleading statements and wrongful trading.

Do I need it?

Directors’ and officers’ insurance is recommended for companies which have directors or officers. If the directors and officers of a company do not have appropriate insurance, they are at greater risk of being unable to defend themselves against:

  • disqualification from holding the position of director;
  • civil proceedings which can lead to extensive legal costs and damages; and
  • criminal prosecution, leading to fines or imprisonment.

What does it cover?

D&O insurance can cover claims made against a company’s directors and officers by regulators, shareholders, investors, creditors, employees and other parties for:

  • breach of duty
  • negligent acts, errors or omissions
  • defamation committed in good faith
  • accidental misstatement or misleading statements
  • employment-related breaches or negligence
  • claims brought in relation to insolvency or breaches of European legislation

It does not cover claims brought against a company as a whole, only claims made against individuals for alleged wrongdoing in their capacity as directors or officers.

Contact us to find out more or to get a free, no-obligation quote.

Covers can vary so always read your policy documents carefully.