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Welcome to Directors and Officers Insurance

Welcome to Business Insurance 24/7, a leading UK supplier for worldwide cover, on Directors & Officers liability Insurance, Mergers & Acquisitions and Professional Indemnity Insurance.

Why do you need Directors and Officers Liability Insurance?

Here's just a few areas where claims could be made against you:

  • Companies Act 2006 (hundreds of possible areas of non–compliance)
  • Investigation expenses
  • Corporate manslaughter
  • Pollution
  • Former directors and non-executives
  • Mergers and acquisitions
  • Health and safety at work
  • Data Protection Act
  • Disability Discrimination Act
  • Racial, sexual and age discrimination
  • Insolvency Act
  • E.U. directives and regulations
  • Consumer protection, etc, etc.

We could go on if you like, but if you're still unconvinced may be we should explode some myths:-

Directors have limited liability - NO THEY DO NOT!
I don't have a title director, so I can't be held liable - YES YOU CAN !
The company can indemnify us - NOT IF IT GOES BUST!
We are only a small company - THE SAME LAWS APPLY!
They cannot touch my personal assets - YES THEY CAN !

If none of this has changed your mind you are truly an exceptional director!! On the other hand, if you would like to find out more about costs and cover to protect your company's directors and officers from being sued, click here to get a Directors & Officers Liability Insurance Quote.

Any director or officers looking after a company should not act outside their own authority, or commit the company to transactions or agreements that are outside the law or outside their own companies memorandum or association, and to avoid placing themselves in a position where their personal interest conflicts with those of the company.

Anyone with a particular skill or qualification must exhibit a greater duty of skill than those without. e.g. director, officer.

Insurance and the law - The law now permits directors to be able to protect and insure themselves against any liability for negligence, default, breach of duty, and breach of trust, this can include insurance for criminal proceedings, that may be brought against a director or officer of a company.

More Information On Directors and Officers Insurance

What does this type of policy cover you for?

Nowadays, shareholders, suppliers and even employers, are increasingly litigious, coupled with directors having to deal with new regulations brought in by the government, and that is a lot of information for a single director, or even a board of directors to digest, and be knowledgeable about.

Any director would know that their duties are vast and be aware of the time it takes to manage all of them, and this also leads directors and officers insurance to be a very important policy to have in force.

SME companies would have this protection to safeguard its’ directors against potential claims, which may arise due to a number of situations that could be faced.

Typical risks

  1. Employment practice and HR problem; this is where an employee may have brought a claim against a director or the company for something like unfair dismissal. A directors and officers insurance policy can include cover for claims made against directors or the company, to defend them and cover the legal costs and damages that may be awarded

You may experience issues concerning employment practice or find yourself with an HR problem, for example, an employee bringing a claim against a director, or the company, for something like unfair dismissal, which is increasingly common.

A directors and officers insurance policy can include cover for claims made against directors or the company, to defend them, and cover the legal costs for any damages that maybe awarded.

Other risks may include:

  1. Sexual, racial, and age discrimination; again the directors and officers policy will help with costs and damages for cases brought in this area
  2. Other areas that the director and officers insurance policy covers would be things like inaccurate accounting, breaking guidelines in respect of corporate regulation and laws
  3. Exceeding the authority of a directorship, wrongful trading, shareholders, wrong information in prospectus papers

This insurance policy will cover costs and damages in these and other areas.

Cost & levels of covers

You can obtain standard quotes on line at very competitive rates and most companies would need to consider the range of covers available based on the number of board members, number of staff, and what type of business they run, but for the average SME with 2/3 directors, £1000,000 cover would cost around £250 – that’s just ‘18p’ a day.

This will protect the company and its’ directors against possible claims, and all serious operating companies should be protecting their directors against legal costs and damages awarded against them, at an average of `68p’ per day – it should be a no brainer.

Claim Examples for D & O Insurance

  • A director signed a company cheque but omitted the word 'Limited'. The cheque was not honoured and by the time the corrected cheque was re-presented, the company had gone into liquidation. As a consequence, the managing director was held per sonally liable for the value of the cheque, over £30,000
  • The company secretary of a leisure group who owned a number of bars was prosecuted for short measures being served a tone of the bars.
  • A Director is detained at an overseas airport while on a business trip, and is questioned by the country’s authorities regarding the activities of his employer which, it is alleged, could be illegal in the country.
  • An employee is involved in a fatal accident at work. The Health and Safety Executive and the heirs to the employee’s estate bring legal action against the Company and the Directors personally for compensatory damages.
  • An employee is involved in a fatal accident at work. The Health and Safety Executive and the heirs to the employee’s estate bring legal action against the Company and the Directors personally for compensatory damages.
  • A claim for unfair and constructive dismissal has been brought against the Finance Director of a distribution company by a former employee alleging sexual harassment and other inappropriate activity including sending text messages out of working hours and inviting her on nights out.
  • A director was sued by one of his distributors for deliberately breaching an exclusive agreement and for using commercially sensitive information within the agreement for personal benefit. His policy funded some £200,000 of defence costs and the distributor eventually dropped the case.

Help & Advice

If you have any questions, click here or call us on +44 (0) 1323 648000 or from the Republic of Ireland call 0818 333 742.

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Directors & Officers Quotes

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