What is D&O Insurance?

What is Directors and Officers Liability Insurance?

Company directors and officers are exposed to over 200 areas of statutory liability under the 1985, 1989 and 2006 Companies Acts. This means that they can face unlimited personal liability for their actions and decisions on behalf of the company.

Directors and officers of businesses can be held responsible for a range of issues including:

1. health and safety
2. data protection
3. maintaining satisfactory accounts
4. fraud
5. negligence

If your business' directors or officers are found to have inadvertently acted outside their terms of reference and this gives rise to a claim, then any compensation and legal fees will be covered by Directors and Officers Liability Insurance. If the act was deliberate, then it may not be covered by the policy.

What cover does a D&O insurance policy provide?

Directors and Officers (D&O) Insurance is designed to protect the personal assets of directors and executive officers and to meet their legal costs. The policy will reimburse the individual for personal liability should they have committed what is known as a "wrongful act". Alternatively, the policy can compensate the company itself where it has reimbursed the director or officer for the costs of a claim.

Need more information about D&O insurance? Visit our dedicated page on Directors & Officers Liability Insurance for more details about this product.