The directors and officers in a company or organisation are in a position of great responsibility. Directors, management and supervisors may face allegations and claims for which they may be personally liable and despite a common, incorrectly, held view to the contrary, even in a company with limited liability status, personal liability of individual directors is unlimited.
Directors and Officers are under increasing scrutiny, and it is common place for allegations of wrongful acts to be made, this being fed by an increasing appetite for litigation, employees being more aware of their legal rights under a much more stringent employment law framework and the increasing amount of regulation that pervades many industries. All allegations of wrongful acts need to be investigated and defended, and this can cost a significant amount even if the case does not reach court. This means directors and officers personal finances are at risk.
A wrongful act could be a breach of trust, breach of duty, neglect, error, misleading statement or wrongful trading, committed or attempted by a director or officer whilst acting in this capacity on behalf of the company.
What is directors and officers liability insurance?
Directors and officers insurance is an essential protection against the financial costs of these actions and will indemnify the directors and officers in respect of their losses, and in the case where a company is required by law or by the memorandum of association to indemnity the director, the policy may indemnify the company for such losses.
How can I buy directors and officers liability insurance?
The directors and officers liability insurance product is available as a stand-alone policy or as part of a more comprehensive management liability insurance policy.
As specialist liability insurance brokers we provide fast access to a range of leading directors and officers liability insurance products from a panel of leading insurers and are ideally placed to be able to provide you with the information you need as to cover options that may be available to you.