Directors’ and Officers’ Insurance

Directors’ and Officers’ Insurance D&OI, covers company directors, officers and senior managers against claims arising from the decisions and actions taken as they manage a business. Any director or company officer will have ultimate responsibility for the business and its employees.

Directors of a “limited liability” company are not necessarily covered for legal actions.  Directors' personal liabilities are unlimited and in the course of carrying out everyday duties for a company, directors are exposing themselves personally to lawsuits, investigations and criminal prosecutions. Directors are personally liable to defend any claims and their personal assets are potentially at risk.

Directors have a number of duties including the common law duty to act in the same manner as “the care of an ordinary man would take in the same circumstance on his own behalf”.  The law expects a senior manager to be experienced, reliable and honest.  Directors also have a fiduciary duty to act in good faith and in the best interest of the company.  There are also statutory legal duties outlined in many laws including Companies Act 1985, Insolvency Act 1986, The Bribery Act 2010, Environmental Protection Act 1990 and the Health and Safety at Work Act 1974.

D&OI may cover you in many cases including financial misconduct, health and safety issues, employment liability and criminal activity and may pay legal costs and expenses and any civil damages awarded. Shareholders, employees, creditors, regulators, suppliers and customers may all take action against you.

 
If you’d like to know more about D&OI, need to renew or revise your current policy, please get in touch.