Directors And Officers Insurance
Provide financial protection to directors, officers and partners within your businessDirectors And Officers Insurance, also known as D&O Insurance, protects past, present and future directors in the event of a claim of wrongdoing.
Directors, officers and partners have additional responsibilities. They have the power to dictate investments, decide protocol, protect the workforce and manage pensions. As a result, these positions of leadership could put key personnel at risk of claims of wrongful acts by employees, investors, shareholders or regulators if they are held personally responsible.
A successful claim could disqualify them from further leadership roles, lead to criminal prosecution or put their personal assets at risk.
D&O Insurance therefore provides vital financial protection in the event of a claim. It can cover the cost of defence and investigation as well as any resulting financial losses.
Key benefits of choosing CKI
- Sound, impartial advice to help you find the right cover for the right price
- A direct line to a dedicated contact for all your insurance queries
- Expert knowledge from brokers who can quickly understand your business’ needs
- First-class service that always exceeds your expectations
- Claims assistance for quick and efficient settlement of claims
- Ongoing support throughout your time with us
- A free insurance review to assess your business’ unique risks and their solutions
Excellent to deal with, great price and a very efficient service. I would recommend Chris Knott Insurance to anyone wanting insurance.
Steve Lawrence
Directors And Officers Insurance FAQs
What is D&O Insurance?
D&O Insurance is designed to financially protect directors, partners and officers of a business against claims of wrongful acts. These acts could include:
- Breach of duty of care
- Breach of trust
- Negligence
- Defamation
- Health and safety failure
- Mismanagement of pension schemes
Occupying a position of responsibility means that employees, the public, investors, creditors and regulators may hold directors personally liable for these acts. For instance, your shareholders may sue you if they believe you made an investment without due diligence.
Claims of wrongful acts mean that you could face director disqualification or prosecution. Personal assets may be at risk too.
Directors Insurance therefore provides financial support in the event of a claim, contributing towards the costs of defence and covering resulting financial losses.
What cover does Directors And Officers Insurance provide?
Directors And Officers Insurance provides cover to past, present and future directors, officers and partners of businesses. This can include non-executive directors too.
It will help to pay the cost of defending a claim of wrongdoing and any financial losses as a result. Wrongful acts can include breaches of trust, negligence, mismanagement of pension funds and health and safety failures. Some types of cover will also provide funds for investigation. D&O Insurance does not provide cover for your organisation as a whole – just its leadership.
Directors Liability Insurance also does not cover you for claims of embezzlement or fraudulent or criminal activity, such as insider trading. The exact cover you need will depend on the kind of business you carry out and the unique risks your business faces.
What is the difference between Directors And Officers Insurance and Management Liability Insurance?
Management Liability Insurance is a more comprehensive policy that includes D&O Insurance as part of its scope. It also usually provides cover to the company more generally as well as to the employee. Directors And Officers Insurance, however, focuses on financial protection to those in positions of leadership.
What is the average cost of D&O Insurance?
The cost of a D&O policy will depend on several factors. These include:
- What your business does
- Your turnover
- Assets
- The financial position of your company
- The number of directors, officers and partners
- The geographical locations your business operates in and their jurisdictions
To find out more about the type of Directors Insurance your business needs and how much it will cost, you can speak to the Chris Knott Insurance team for expert advice.
Do I need Directors And Officers Insurance?
Directors Liability Insurance can benefit companies of all sizes. Even if you have a small business, you could still be sued if one of your employees has a fatal accident on site and you are seen as being responsible. Protecting your own personal assets with D&O Insurance could therefore provide valuable peace of mind.
Do sole traders need Directors Liability Insurance?
Sole traders cannot have Directors Liability Insurance because there is no legal distinction made between you or your company.
However, if you become a limited company, you may want to get it. A limited company makes you and your business separate legal entities, which limits your liability. However, as a director of that company you open up the possibility of personal liability if a claim of wrongdoing is made against you.
Contact Chris Knott Insurance for a
Directors & Officers Insurance quote today on 01424 205009
