What is Directors and Officers Liability Insurance?

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 mean the same thing which is protection for claims brought against directors, officers and senior employees for actual or alleged breach of duty, neglect, misstatements, errors or omissions.

You can get a quote online and why not talk to a D&O insurance broker who can give you advice and a tailored quote?

What can be daunting is that when you as a director 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 also 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 ranging from 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.

What will Directors and Officers Liability Insurance cover me for?

The costs of even a successful defence can be substantial and whilst payment from your company (if in existence) may be possible can your company's balance sheet afford it? Directors and Officers Insurance provides the legal costs involved in defending a claim.

Here are some examples that illustrate possible issues you and your company could face.

• A driver fell asleep whilst driving for the family run haulage firm and two motorists were killed. The court held the operations manager responsible for not ensuring that drivers adhered to relevant driving regulations and also for not keeping his co-director informed of these regulations.
• A general manager sent pornographic emails to a colleague who was offended and took an action under the Sex Discrimination Act.

How do I get a Directors and Officers Liability Insurance quote?

You’ll need to explain about your company’s activities and turnover and financial position. You’ll need to consider the limit of indemnity and excess and type of cover you need. For advice and help with this, talk to a qualified Directors and Officers insurance broker. Why not select one from the homepage?

To talk to an expert in your area and get a quote.