How Directors & Officers insurance can protect you

Directors and Officers liability insurance (known as D&O cover for short), is one of those insurance products that you, as a company director or key decision maker, may assume you can do without, especially if you own or work for a limited company. Nothing could be further from the truth. 

Without D&O insurance, you personally - rather than the organisation as a whole - can be held liable for alleged wrongful acts (breach of trust, breach of duty, neglect, error, misleading statements or wrongful trading) carried out in your  capacity as a director, officer or key manager. This is regardless of whether your company has limited liability status or not.

Engineering company director personally sued for £300,000
The director of an engineering manufacturer was personally sued for £300,000 after a claimant alleged he had paid money due to him to other creditors after going into administration.

Defence costs of £890,000 for an alleged health and safety breach
A managing director and several technical managers faced criminal prosecutions for alleged breaches of health and safety legislation which resulted in the accidental deaths of two employees.

Unfair dismissal claim costs of £21,000
A claim for unfair and constructive dismissal was made against the Finance Director of a distribution company by a former employee who alleged sexual harassment and other inappropriate activity.

Imprisonment of director and CEO for misleading statement
Criminal proceedings brought against a director and CEO of a software company for a misleading trading statement designed to induce others to buy shares in the company. They were found not guilty of knowing it was misleading, but guilty of making the statement recklessly. On top of paying large defence costs, one was jailed for two years, the other for three and a half.

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