Directors’ & Officers’ Insurance explained
This type of insurance policy is designed to shield the directors and key managers of a business, from the significant financial costs of allegations made against them. They could be accused of knowingly disregarding health and safety regulations, or being negligent in the course of their daily duties.
As a director or manager, you would be obliged to pay the cost of any legal defence, awards or settlement payment that occurs because of the claims made against you. If any of these situations arise, it’s extremely beneficial to know that you have D&O Insurance to take care of these costs.
What does Directors’ & Officers’ Insurance cover?
D&O Insurance is a flexible policy which can provide cover for senior members of an organisation, including executive and non-executive officers, managerial and supervisory employees, and non-executive directors. The majority of D&O policies cover all current, future and past directors and officers of a company and its subsidiaries.
This insurance policy typically provides protection against events such as:
- Misleading statements
- Financial reporting errors
- Negligence
- Failure to comply with regulations or laws
- Breach of duty
- Breach of trust
Your coverage will be dependent on your insurer and business – please check your individual policy for detailed information about what you’re covered for.