Directors And Officers Liability Insurance | Covered Insurance

Directors and officers liability insurance has become more and more important with people in this position potentially liable. Find out more here

Directors and Officers are under increasing scrutiny, and it is common place for allegations of wrongful acts to be made. Any allegations of wrong doing need to be investigated and defended, and this can cost a significant amount even if the case doesn’t reach court. This means directors and officers personal finances are at risk. So it’s essential that companies provide protection with Directors and Officers liability insurance (D&O).

What is a Wrongful Act?

This Could be a breach of trust, breach of duty, neglect, error, misleading statement or wrongful trading, committed or attempted by a director or officer whilst acting in this capacity on behalf of the company.

A simple solution to a complex range of risks

Whichever sector your company operates in, your directors and officers face the same types of liability

The reassurance of directors and officers liability insurance

Directors and officers insurance covers costs associated with the defence of an allegation of a wrongful act. This means it takes away the financial risks faced by directors and officers, giving them protection should an allegation or claim be made against them. Considering that even simple investigations can cost thousands, if not hundreds of thousands, of pounds, purchasing directors and officers makes financial sense.

Why are individuals so vulnerable?

  • Employees know their employment rights and are increasingly likely to sue

  • Legal Liability is shifting away from companies and towards personal liability

  • Regulators are now more proactive in investigating companies

Claims come from all directions

Failure to act in the company’s best interests, harassment or negligence – there are hundreds of ‘wrongful acts’ that directors and officers can be accused of. They may not even be aware they’ve done anything wrong.

  • Employee Claims – unfair dismissal/failure to promote

  • Regulators - Health & Safety/ DTI Investigations

  • Shareholders – directors decisions

  • European Legislation – directors must be sure not to breach EU Legislation.

  • Creditors/Insolvency Claims – Directors and Officers can be singled out for such claims

For further information on Directors & Officers insurance please do not hesitate in contacting us on 0845 862 2727 or email