Directors’ and Officers’ Insurance provides your key personnel with vital peace of mind, ensuring that their personal assets are protected in the event of an alleged wrongful act. As a senior member of the team, a claim may be brought against the individual by employees, members of the public, shareholders, governing bodies and third parties. D&O provides cover for:
- Breaches of duty or trust
- Misleading statements
- Negligent acts
- Any act wrongfully committed
What is Directors’ and Officers’ Insurance?
A D&O policy is designed to provide protection to key members of your team in the event of an alleged wrongful act, such as negligence or breach of trust. Your policy will cover the cost of legal defence and any compensation awarded if the claim is upheld. This ensures your team’s personal assets are protected if the court rules in favour of the claimant.
D&O can also be purchased as part of a Management Liability policy.
Who is D&O for?
It is for your key personnel – such as directors, managers and officers – who may have responsibilities to the public, your employees, your shareholders and other third parties.
What is the average cost of Directors’ and Officers’ Insurance?
It is difficult to provide an accurate figure for the average price, because premiums vary based on a wide range of factors, including job description, industry and company size.
Is Directors’ & Officers’ Insurance the same as Errors and Omissions?
Although the policies are similar, a D&O policy protects specific members of your team. E&O, on the other hand, protects any business representative and the business itself.
Who pays for Directors’ & Officers’ Insurance?
The business will typically pay for the cover of specified individuals because it helps to protect valued members of the team.
Does it cover non-executive directors?
Yes, it can be used to provide suitable protection for NEDs.
Do nonprofits need D&O insurance?
It is recommended that nonprofits have a policy tailored to their organisation. In an increasingly litigious society, it is not uncommon for claims to be brought against nonprofits; a D&O policy will help to protect the interests of trustees, directors and other key personnel.
Is Directors’ & Officers’ Liability Insurance compulsory?
No. While it provides peace of mind to your teams, it is not required by law.
What is Management Liability?
A Management Liability policy combines cover for the individuals (D&O) as well as the business through Company Legal Liability and an optional extension for Employment Practices Liability. Find out more about Management Liability Insurance.