Directors and officers insurance covers the legal liability of directors, officers and senior employees in respect of claims brought against them for actual or alleged breach of duty, neglect, errors or omissions and misstatements, in their capacity as directors or officers.
If you have any questions concerning Directors and Officers Insurance please call Clarke Dove Insurance on 0115 962 0855.
Directors and Officers Liability Insurance
Directors and officers’ duties are set out in reams of case law, legislation and regulations. Aware of these or not, as a director, you have to adhere to these duties – ignorance of the law is no excuse in the courts eyes.
The responsibilities and liability you face as a director can be vast. Your personal liability is unlimited and your personal assets can be at stake. In some cases, you may even face criminal prosecution.
What can happen
Health and safety, employment legislation, libel and slander and regulatory changes are the most common areas under which claims can be brought against you as a Company Director.
To give an example, if a former employee was to name you personally in a claim for unfair dismissal, even if the claim was unsuccessful, the legal costs incurred in defending yourself could run to thousands of pounds.
Be aware of your duties, keep abreast of legislative and regulatory developments and arrange directors and officers liability insurance to protect yourself.
This insurance covers the legal liability of you and other directors and officers at your company in respect of claims against you. This includes the legal costs and expenses incurred in the defence of a claim arising from your actions and decisions made on behalf of the company in your capacity as directors or officers.
It really is worth considering directors and officers liability insurance – talk to a qualified insurance broker now for more help and advice.
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.