What is Directors and Officers Liability Insurance?

Directors and officers liability insurance provides protection against the legal liabilities arising from claims brought against directors, officers and senior employees for actual or alleged breach of duty, neglect, misstatements, errors or omissions.

You will hear it referred to in a number of ways, D&O insurance, D&O cover, D&O liability, company director liability insurance and so on, but basically they all mean the same thing.

As a director, if you are accused of breaching your duties, actions may be brought against you personally, with devastating consequences even if you have done nothing wrong. This touches all sectors, public or private companies, education and not for profit organisations.

As well as regulatory bodies, the list of potential claimants includes your shareholders, employees, customers, suppliers and creditors and even your competitors. There are a myriad of laws under which you as a director could be held culpable, including the Companies Acts, Data Protection Act 1998, Insolvency Act 2000, Employment Relations Act 1999, Environmental Protection Act 1990 and the Health and Safety at Work Act 1974.

Why not talk to a D&O insurance broker who can give you advice and a tailored quote covering your specific insurance needs?

Last reviewed 01/2010

To talk to an expert in your area and get a quote, contact your local insurance broker.