Directors’ and officers’ insurance

Who needs D&O insurance?

The clue's in the name.

If your company has directors or key management staff, then they (and you) are personally liable if there's a complaint.

And the consequences can be serious - you could be barred from being a company director, or face personal financial costs or even imprisonment.

Directors' and officers' insurance covers past, present, and future directors and board members. And it covers company directors who aren't employed by the business (outside directors).

It’s also a good selling point if you’re looking to employ new management staff - it shows you care about them, and their finances.

What does D&O insurance cover?

If a regulator, shareholder, employee, customer, competitor or member of the public thinks your firm hasn't toed the line – for whatever reason – they can take legal action against those who run it.

Crikey.

Directors' and officers' insurance steps in if you or your firm is accused of wrongdoing. Maybe a shareholder blames you for their financial loss due to perceived mismanaged finances, or a disgruntled customer accuses you of misleading them.

Unless you have deep pockets, legal know-how, and a lot of time on your hands, you could find yourself in a sticky situation.

D&O insurance pays your legal bills and compensates the aggrieved party if necessary.

Do I need employment practices liability insurance?

It’s a modern reality that the majority of claims against directors are usually employee (or employment) related.

Employment practices liability insurance can be added to your directors' and officers' insurance as part of a 'suite' of cover for your top brass.

It means that if a disgruntled employee says they’ve been badly treated and makes a claim of harassment, or breach of contract or similar, you’re covered. You’ll get a solicitor to represent you, while your insurance takes care of any compensation awarded too.

You can read more about employment practices liability insurance here.

What's the difference between employment practices liability and employers' liability?

Good question.

Employment practices liability comes in a package with directors' and officers' insurance (you can't buy it on its own).

It covers anything to do with financial loss or wrongful acts from a member of staff’s point of view. So if an employee (or an ex-employee) accuses you of breaking your contract with them, unfair dismissal, harassment, failing to promote them etc., your employment practices liability insurance steps in.

Employers' liability insurance is a legal requirement if you employ anyone. It covers your legal costs and any compensation awarded if an employee is injured or gets ill because of work – and your business is held liable.

How much D&O insurance do I need?

Solicitors are expensive. Very expensive. And you'll need the best if a claim is made against you.

Luckily, your policy comes with a team of specialist legal experts ready to fight your corner.

Always bear in mind that you can't have too much cover. Your legal defence can cost tens of thousands of pounds – and that's before the compensation bill from your client arrives.

So, think about what the worst-case scenario could cost you, and start from there.

What else do I need?

That depends on the business you run and what you do.

If you go out and about to meet people, or people come to your workplace to catch up, there's a risk of accidents happening. Public liability insurance protects your bank balance if someone claims you caused physical damage to them or their property.

Then there's the work you do…claims and allegations of negligence, mistakes and things you've failed to do can be costly. So professional indemnity insurance is a good option if you provide specialist services to paying clients.

And if your business is online, it’ll be at risk from cybercrime. The modern world means modern threats and a whole new way criminals can exploit their victims. Cyber insurance can't stop an attack from happening - nothing can, but it can help if the criminals pick on you. It calls in the experts to get your business back up and running. Essential if your business is web reliant.

Why should I buy my insurance from you?

Glad you asked.

The simple answer is: we know what we're doing. Professional insurance is all we do, so we understand what you need, even if you don't.

We also know that buying insurance can be, well, a bit of a pain. So we make sure getting yours is quick and hassle-free.

We do all that while treating you like a human being, too. You won't find a call centre here. Or a phone menu. And we've banned nonsense insurance jargon.

Anything else? Well, there's the great stuff you get, such as an 'I'm insured!' badge for your website – perfect for the professional professional.

Also, we'll give you money each time you recommend us.

If you're after a second opinion, have a look at our customers' feedback. They're the ones you should really listen to.