Why you need Directors & Officers Insurance

The Limited status of your Company will not necessarily protect you from potentially unlimited personal liabilities.

Most directors incorrectly believe that they're protected by the limited liability status of their company. Directors and Officers liability insurance 'plugs' the gap in directors' exposure where the company cannot indemnify them.

Things you should know

• Directors do NOT have limited personal liability - your personal assets are at risk
• Your company cannot indemnify you if it has gone into liquidation/administration
• Legislation/Regulations apply to ALL companies, whether large or small
• Non directors can be liable too

Directors & officers online quote

How can a Claim arise?

Anyone who is a director or officer of a company, charity or other institution run by a board or committee (including clubs and resident's associations) is at risk.  Where a director or officer is alleged to have committed a wrongful act (any actual or alleged breach of duty, trust, neglect, error or omission) in the performance of his/her duties and is the subject of litigation, they may have to personally meet any losses arising out of the litigation, such as investigation costs, defence costs or actual damages. 

Claims can arise under the following areas:

• Companies Act
• Health & Safety at Work
• Insolvency Act
• Data Protection Act
• EC Regulations/Legislation
• Employment practice legislation
• Shareholders
• Customers/clients
• Creditors
• Competitors
• Investigation expenses

Claims will be in the form of:

• Civil proceedings
• Arbitration hearings
• Criminal proceedings
• Administrative and regulatory factfinding proceedings

All of these can result in substantial costs being incurred, which the company may not have the funds to meet. In such cases, the director or officer will have to use their own personal resources to defend their position.
 
Directors & officers cover provides indemnity in respect of these costs. This protects the individuals own assets and alleviates the need for the company to  find the necessary funds to indemnify the director.

Further information

Get your directors & officers quote online or contact us for a quotation or simply to speak to our Advisors who can provide you with further information on the range of policies and cover available. You can also register your renewal date and we’ll contact you when your insurance is due for renewal.