Directors & Officers Liability insurance is probably one of the least well understood types of insurance available to organisations.
Directors & Officers liability insurance is designed to cover the cost of compensation claims made against your business’s directors and key employees/managers (officers) for alleged wrongful acts.
Some reasons as to why you may need the cover of Director & Officers insurance are as follows:-
- Employment practice claims such as sexual harassment or wrongful dismissal are increasing and can result in huge settlement amounts
- One of the primary drivers of claims within the UK are fines and investigations imposed by regulators such as the HSE
- Creditors may take legal action against directors if they feel they have not acted in their best interests if faced with bankruptcy or insolvency
- Legal costs for defending any allegations against the company or one of its directors can often run into tens of thousands of pounds
- Alleged misconduct by directors or companies is not covered under any other liability policy, including Professional Indemnity
As you can see from the above, the insurance covers quite a broad range of scenarios, especially as claims can come from within an organisation or from a third party.
If you would like any further information regarding this class of insurance, please contact me.