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.