Directors & Officers Insurance
Personal protection for your companies Directors, Managers & Officers
0191 482 1219
Contact a D&O expert today
Don't be held personally liable for wrong acts committed as a director or officer of your organisation.
Directors and Officers Insurance, often known as D&O insurance covers the cost of claims made against the organisations directors and key managers (Officers) for any allegations of wrongdoing. These allegations whether factual or not need to be investigated and defended, often costing thousands of pounds before the case even gets to court.
As a result of the high costs the directors & officers own personal finances are at risk, making it essential that companies provide their directors and officers protection with a comprehensive D&O policy.
The NC Insurance team will review your organisation to identify a policy tailored to you. Covers can include:
- Breach of trust
- Breach of duty
- Neglect
- Error
- Misleading statements
- Wrongful trading
Does your organisation require Directors & Officers Insurance?
Unfortunately for the many directors and officers working for businesses across the UK individuals are becoming increasingly vulnerable to claims due to several factors:
- Employees know their employment rights and are increasingly likely to sue.
- Legal liability is shifting away from companies and more towards personal liability.
- Regulators are now far more proactive in targeting and investigating companies.
In reality claims can occur from any act or decision carried out in the workplace, meaning that they often range in severity and validity. Common claims typically include:
- Claims by investors/ shareholders who blame directors personally for their own losses.
- Actions brought by the HMRC where insolvent trading or misappropriation of tax is suspected.
- HSE investigations into negligence.
- Police and SFO investigations where fraud is suspected.
- Actions brought by liquidators where wrongful trading or incorrect payments are suspected
Directors & Officers Insurance FAQ's
| What does company Directors & Officers insurance cover do? |
| D&O Insurance will protect you against the financial cost of claims made against you personally as a director, partner or officer of your business. Whether that be a breach of contract, negligence or a breach of duty, D&O insurance will cover you for the cost of defending and settling these claims. |
| What is a ‘wrongful act’ |
A wrongful act typically relates to any of the following committed or attempted by a director or officer whilst working on behalf of the organisation:
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| How much D&O Insurance cover will I need? |
| The level of cover you require depends largely on the activities of the organisation, the work that you do and the risks that you are exposed too. We’ll work closely with you to identify your key risk areas and activities to ensure you have the correct level of cover to ensure all the companies directors and officers are sufficiently protected. |
| Do I need a separate policy for a nominee director? |
| Many organisations overlook nominee directors when reviewing their directors and officers insurance needs. Nominee directors are often appointed to subsidiary companies with very little consideration meaning potential problems are common for either the business group or the individual director. Fortunately UK law dictates that there is no difference between directors and nominee directors meaning they would be included under a standard directors and officers insurance policy. |
| Can I get a policy designed specifically for partnerships? |
| Partnership’s are often vulnerable to employment-related claims meaning a D&O policy can be particularly useful for an organisation like a partnership. Contact an NC Insurance broker and we’ll identify the best insurance policy for the most competitive price, tailored to your organisation. |
Directors & Officers Insurance Claims Examples
| A newspaper distribution employee seriously injures themselves whilst lifting a bundle of newspapers being delivered. An investigation discovered the employee was not sufficiently trained in lifting resulting in both the employee and HSE taking legal action against the directors. |
| With a comprehensive directors & officers insurance policy from NC Insurance the costs of defending the claim would be covered as well as any fines or compensation payable. |
| An engineering firm invested shareholder money into a project on the assurance of the company director that the project would be an opportunity to grow. The company director had not completed sufficient research into the project and the shareholders faced significant financial losses as a result. |
| The shareholders decide to claim against the company director for their negligence, fortunately with directors and officers insurance any legal costs and subsequent compensation will be covered. |
| A companies sensitive data is accidently posted online due to an error by the directors. As a result both the ICO and the individual customers seek to claims compensation for the loss of sensitive data. |
| With D&O insurance in place the company will be covered for legal costs, fines and compensation as a result of the breach of the duty of trust. |
