D&O Liability Insurance Policy Options

Why do I need directors and officers insurance?

It is a myth that the directors and senior managers of a limited company, plc or charity have no or limited liability. D&O insurance is designed to pay your legal costs and any civil damages awarded against you personally. It provides protection for your personal assets, when you, rather than the business, is sued by a third party.

What is covered?

D&O insurers have individual policy wordings but normally a directors and officers liability policy will cover claims made as a result of failure of duty of care or failure in fiduciary or statutory duty. Insurance covers defence costs and any awards made up to the level of indemnity of the policy, less any policy excess.

Who makes claims?

Claims can arise from any number of third parties but typically are brought by; shareholders, creditors, government and regulatory bodies, employees, auditors, liquidators, customers and suppliers.

The business will indemnify me

Company indemnities often contravene the Companies Act and even when a business promises to indemnify an individual, if the offence or failure to perform is the responsibility of an individual, rather than the business, then the claim will be made against the individual rather than the business. In the event of insolvency there will be no prospect of the company indemnifying the individual.

What limit of insurance do I need?

No two businesses are the same and it is important you take a realistic view of the potential damages and legal costs you could incur. Policies are normally issued with a level of indemnity between £100k and £1 million. As a board of directors you should calculate your potential liability to avoid under insurance.

How do I pay for my insurance?

For most policies we offer the choice of monthly or annual payment terms. Annual payments are made by cheque, debit or credit card or if you prefer to spread the cost of your insurance and pay monthly we offer a direct debit scheme. 

How do I get help?

How do I obtain a quote?