Director’s and Officer’s Insurance
Protect the directors and senior managers in your business in case a mistake is made
What Does D&O Insurance Cover?
Director’s and Officer’s Liability insurance protects your business’s directors and senior managers in the event that it is alleged they have made a mistake, taken a bad decision or committed a “wrongful act” in the course of carrying out their duties for the company. These allegations could be made by shareholders, investors, employees, regulators or other third parties.
Wrongful acts include:
- breach of trust
- breach of duty
- neglect
- error
- misleading statements
- wrongful trading
- Health & Safety breaches
Allegations need to be investigated and can be costly. Even if a case never gets as far as the courts, investigation costs can quickly mount up. This can have a significant impact on the alleged wrongdoer’s personal finances, which is why D&O insurance is an important way of protecting key senior individuals in a business.
D&O insurance covers the legal defence costs as well as any compensation awarded to the claimant.
Who Needs D&O Insurance?
All directors and senior managers should be covered by a D&O insurance policy. This should include all board members as well as non-executive directors too. In short, all senior directors and managers who are responsible for taking key decisions should be protected with D&O insurance, paid for by the company.
How Much D&O Insurance Do I Need?
As with other types of liability insurance, the amount of D&O cover you need will depend on a variety of factors. These include:
- the size of your business
- the sector in which you operate
- the value of projects that you work on or deals that you make
- the levels of authorisation given to directors and senior managers
- how risk averse your business is.
Our recommendation is always to have as much cover as you can afford to ensure the right amount of protection is in place should you need it.
What’s the Difference Between D&O Insurance and Professional Indemnity?
D&O insurance and Professional Indemnity insurance both provide protection against bad advice and accidental mistakes. However, there is a clear distinction between the two types of cover:
- PI insurance protects the business in the event that a client alleges they’ve been given bad advice or made a mistake that has resulted in financial loss
- D&O insurance protects the directors and senior managers in the event that one of them allegedly makes a mistake carrying out their duties as a director or officer of the business which causes harm, financial or otherwise, to others.
Need more
information?
Please call the team on 020 8290 9080 to talk through your D&O insurance needs. Alternatively, you can email us at business@anthonyjones.com
“Every business needs to have the correct insurance cover on all aspects of their business, this is time consuming and can soon become a headache.
Since working with Anthony Jones the headaches have gone and it’s the good honest support from them that has ensured they have kept our business for over 15 years now.”
James Dew
MD
Harwoods of London Ltd
FAQ’s
Some of our most asked questions, answered below:
What is Directors & Officers insurance?
Also called D&O insurance, this covers the cost of any compensation claims your business needs to pay if a director or key manager is alleged to have done something wrong during the course of their work. This might include negligence, breach of trust, making a mistake or failing to do a task.
Reviews
Straightforward, thankyou
Stephen Passfield is our account handler is one of the best agent we've worked with.
He is very helpful,kind and flexible to us and always there for us.
We've couldn't asked for more.
Thank you much for help for whole these years.
We really appreciate and very grateful to you.
We highly recommend him and his team
TM Brothers Transport
Their agents always very kind, flexible and helpful.
I highly recommend them.
"I chair a campaign to save our local pub. We launched a share sale and succeeded in buying the Crown a few days ago, so we needed help in selecting the right insurance for the site whilst renovations were under way, including unoccupied property cover. Tony Ellis of Anthony Jones Insurance was really helpful in guiding us through this process, and we now have the correct cover in place. Fast, easy to deal with & knowledgeable - just what you need from your insurance broker! Well done Tony and all at A Jones."
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