Whilst corporations and businesses are protected by liability insurance, those running the business – directors and officers – need to be protected against a variety of claims. Directors and officers liability insurance, also called D&O liability insurance, is a way of looking after oneself in case of inadvertent breaches of the Companies Act, as well as a number of other risks.
Directors, managers, and administrators make decisions in the workplace that can have a knock-on effect for a range of people tied to the business, such as shareholders. If this decision results in their financial loss, or legal proceedings against the company, they will expect remuneration which can be extremely costly. In this case, it is important to have D&O coverage.
D&O Insurance Policy Features
Legal Cost Cover
This will cover the costs of your legal and criminal defense should a claim be made against you. Find out more about Directors and Officers Legal Cost Cover.
Corporate Reimbursement Cover
This covers the insured company for losses accrued from claims against directors and officers
Wrongful Acts Cover
Protection against wrongful acts in the insured party’s capacity as an officer or director
Breach of Conduct
This will protect directors against claims of alleged breach of conduct, including acts of harassment
This policy feature will help cover the legal cost of a lawsuit resulting from bankruptcy
Public and employers’ liability in the event of a claim against the company. Find out more about D&O Liability Covers.
What is D&O Insurance?
If you are searching for directors and officers liability insurance, you are probably the manager or director of a company. With that position comes great risk and responsibility, including both external claims (from employees, stockholders, or suppliers for example) and internal claims (made by subsidiaries or the company itself against you). With a breadth of potential pitfalls, which you would hopefully never comes across, you need to be protected against all possibilities.
D&O insurance brokers, like many of our partners, understand the nature of your job and the importance of full coverage. There are a number of aspects that could become a claim, such as:
investors and shareholders believe your actions resulted in their personal losses
liquidators’ actions wherein incorrect payments to creditors are suspected
instances of action brought by the HMRC against the company as a result of unpaid or incorrect tax
negligence is suspected and an HSE investigation is implemented
police investigations where there is suspected fraud
Company director liabilities can be numerous and all the above can have a negative impact not just on shareholders, but it can harm the reputation of the company as a whole. In this instance, you would need cover so you are able to deal with the issue and keep the business running smoothly.
It is worth noting that the legal definition of an officer is relatively vague, and can sometimes extend to managers or supervisors where they are the head decision maker. Whilst company directors should be aware of their responsibilities in terms of the law, it is worth noting the hierarchical issues that can arise at all organisational levels.
Complete one short form and we will do the rest. Your details will be automatically submitted to our specialist insurance partners, who will compete to offer you the best directors and officers insurance quote.
Frequently Asked Questions About Director and Officers Insurance
Any company, whether a non-profit or for-profit company, can have claims made against its directors. If you run a non-profit organisation, you may want to look into purchasing director and officers insurance. This will protect you in cases such as unpaid or incorrect taxes, suspected negligence, and suspected fraud investigations. For competitive pricing on directors and officers insurance policies, please fill out our form for a call back from a specialist.
While it is important for people running a business to have liability insurance should something happen to their employees while on the job, it is also a good idea for those running the business to have director and officers liability insurance, which can cover eventualities such as breach of conduct, bankruptcy litigation costs, legal cost coverage, wrongful acts coverage, corporate reimbursement coverage, as well as public and employers' liability.
No matter what you may hear elsewhere, director and officers insurance is not the same as a fidelity bond. A fidelity bond (or fidelity insurance) provides coverage for loss of money, securities, etc., due to dishonest actions by an employee or employees. Director and officers insurance protects the directors, officers, and managers of a company against external and internal claims. While both forms of insurance are useful for a company to have, it is important to know that they are not the same and cover different things.
Running a company comes with both risk and responsibility to the company and its employees. Therefore it is important to be covered for any potential eventuality. External claims from stockholders or suppliers, and internal claims from subsidiaries or even the company itself can be made against you, and in those cases you will want to be protected.
While director and officers insurance is not strictly necessary, it is an important protection to have if you are running a company. In order to protect yourself and the reputation of your company should a claim against you be filed, we recommend purchasing director and officers liability insurance. Just fill out our form, and we'll take care of the rest.
The short answer is, yes. Any company can benefit from having director and officers insurance, as directors take on a great amount of responsibility and risk whilst running a company. Any added protection will only benefit you in the future, should claims be made against you. If you're in the market for director and officers insurance for private companies, please fill out our form and we'll take care of the rest.
I run a small business based just outside the city. QuoteSearcher put me in touch with partners who offer good quality insurance at the right price. I found exactly what I was looking for.
Mr Cameron Brazier - Putney
After searching for hours on the internet I finally came across QuoteSearcher whose partners provided me with excellent quotes far better than I had received from anyone else.
Neil Heron – Virginia Water, Surrey
Let's find the best officers & directors insurance for you