Directors and officers insurance
Directors and officers (D&O) insurance is more valuable than ever as the threat of personal litigation against the directors or officers of a company continues to increase.
Claims against directors and officers can come from any decision they make or actions they carry out in their role, whether it be from disgruntled customers, investors, shareholders or official bodies.
Regardless of your company’s size, the legal cost to defend a director is substantial, as are the potential penalties they can incur.
What does a D&O insurance policy cover?
A D&O policy provides insurance cover for legal costs and damages where actionable errors have been made by the directors and officers (past, present or future) of the company.
Features may include:
- Wrongful acts, breaches of duty or trust, neglect, error, misleading statements, omission, negligent act or any other act wrongfully committed
- Advancement of defence costs
- Damages awarded against director
- Company reimbursement
- Investigation legal fees and expenses
- Managerial/Supervisory staff included as insured persons
Why buy D&O insurance?
Here are some key reasons why directors and officers (D&O) insurance can provide your company and directors with extra protection:
- The financial impact can be devastating for individuals who are held personally liable for their actions
- The threat is all around – claims can come from many sources, including employees, shareholders, creditors, customers, competitors and regulators
- Investigations are expensive and time-consuming- impacting the resources and running costs of the business
- The damage can be lasting – responsibility and liability for their actions can remain with a director long after they have left the company, even into retirement
- They could face criminal action – which could lead to hefty fines and potential imprisonment
Get in touch
For help with arranging directors and officers insurance, contact CLEAR MPW on 01622 683913 or firstname.lastname@example.org.