To learn more about how we can help you protect yourself from the costs of defending yourself against an alleged wrongful act in your capacity as a director or officer of your business, please get in touch.

Insurance for Directors & Officers & Management Negligence.

Directors and officers liability Insurance ("D&O") is liability insurance that indemnifies the directors, partners and officers of a company, or the organisation(s) itself, against cost of claims for compensation or defence costs in the event that legal action is brought for alleged wrongful acts in their capacity as directors, partners and officers.

Management liability insurance is a broader form of D&O insurance, and covers liabilities of the business as well as the personal liabilities for the directors and officers.

A director, partner or officer has responsibilities to many types of people including employees, members of the public, investors and regulators, all of whom may find reason to make a claim for a wrongful act that has affected them. Furthermore a director, partner or officer can be made personally liable for the payment of fines, compensation or be imprisoned.

Sources of claims include:

a health and safety breach or manslaughter
an employment matter
a breach of duty or trust
negligence
defamation
wrongful trading under section 214 of the Insolvency Act 1986
the operation or administration of a pension or employee benefit scheme
pollution.

D&O cover is common among larger companies in the UK, but gaining a foothold in the SME sector, particularly as more and more products are being underwritten and sold based on publicly available information, such as at Companies House, which makes the process a lot simpler.