Directors & Officers Liability Insurance (D&O Insurance) is an insurance policy designed to protect the directors and officers (including senior managers) for alleged wrongful acts whilst carrying out their duties in running a company. Directors & Officers Liability Insurance can also extend to include entity cover to protect the company itself should proceedings be brought against the company directors and the organisation simultaneously.

Directors & Officers Liability Insurance can also cover claims relating to:

  • Corporate Manslaughter
  • Health & Safety at work Act
  • Data Protection Act
  • Disability Discrimination Act (DDA)
  • Racial Discrimination
  • Sex Discrimination
  • Age Discrimination
  • Consumer Protection

Typical claims can arise from many different sources including:

  • Shareholders
  • Government and Regulatory bodies
  • Employees
  • Clients
  • Suppliers

Whatever size of company you are, the requirements for company directors are the same and we have access to a specialist team and can advise on the most appropriate protection required.

Ten reasons to purchase Directors and Officers Insurance


1. DISQUALIFIED DIRECTORS.  Hundreds of directors are disqualified each year for periods ranging from two to fifteen years with a potentially devastating impact on personal circumstances. Even after a disqualification period ends, there should still be problems with reputations and creditworthiness so it is best to be able to afford the best legal defence when allegations are made.

2. PERSONAL EXPOSURE.  When a director is accused of personal negligence, their private assets including homes, investments and pension funds are put at risk. D&O Insurance covers the costs of mounting a robust defence and meeting any settlement. Family firms can often erupt into disputes both internally and externally. D&O Insurance cover can pay for legal expenses incurred in disputes between directors of the same firm.

3. FAMILY FIRMS.  Family firms can often erupt into disputes both internally and externally. D&O cover can pay for legal expenses Incurred in disputes between directors of the same firm.

4. PARTNERSHIP.  Partnerships can be particularly vulnerable to employment related claims – especially discrimination, harassment and failure to promote.

5. FIRMS.   Firms can often be troubled by mischievous, vexatious or simply unfounded accusations which can be incredibly frustrating and time-consuming. D&O Insurance cover can give valuable peace of mind at such difficult times.

6. CRIMINAL ACTS.   While it is against public policy to be able to insure against dishonest or fraudulent acts, D&O Insurance can pay legal defence costs up until the moment that guilt may be established.

7. INVESTIGATIONS.   The Department for Business, Enterprise and Regulatory Reform receives complaints about thousands of companies every year and mounts further investigation in the majority of cases which can be hugely expensive and time-consuming for the subject D&O Insurance cover helps to cover the costs involved.

8.  SME’s.   Small and medium sized companies are often dynamic and entrepreneurial by nature but often have little in the way of risk management policies and procedures. They are particularly susceptible to employment related disputes. If these reach tribunal stage, they can be expensive and protracted, usually involving the senior management team and distracting them from the day-to-day running of the business. D&O Insurance covers the defence costs and any resultant compensation payments.

9. RUN-OFF COVER.   Resignation and retirement are not necessarily the end of any negligence claim and actions may even be pursued against the director’s estate after death. D&O Insurance can provide vital run-off cover as long as it was in place at the time of the alleged incident.

10.  CODIFIED DUTIES.  In 2007 changes in the UK Companies Act introduced certain duties for directors which had never been laid out in statute before. It has made directors more accountable and the onus is on them to be aware of their responsibilities under such laws. A breach of such duties will now be easily identified and can result in claims being made against the directors. A D&O Insurance policy may cover the defence costs and any resulting damages arising from the wrongful acts of a director resulting in the duties being breached.

If you would like us to obtain a quotation for your consideration please complete the “Request a Quote” form or alternatively contact us by email or telephone in order that an appointment can be made to discuss your particular requirements.