Directors & Officers Liability Insurance – Should you be Covered?


Your company’s status as Limited DOES NOT protect your company directors from the consequences of their business decisions and activities, for which they may be personally liable.
Personal Liability is unlimited to the extent of your entire financial worth. Make sure your directors and officers are protected with the correct cover!




What is Directors and Officers Insurance?

Directors and Officers (D&O) Liability Insurance provides protection for the directors and officers of a company for claims against them for wrongful acts committed solely by reason of their acting as a director or officer of a company.Wrongful acts include actual or alleged.

What is Covered?
  • Cover for legal costs, expenses and any civil damages awarded against you
  • Reimbursement to the company if it pays out to protect you
  • Legal representation expenses (up to the policy limit)
Who is Covered?
  • All current, future and past directors and officers of a company and its subsidiaries are covered under a D&O policy. This can also include non-executive directors.
  • Broad definition of ‘insured person’, including employees acting in a managerial role.
  • Automatic cover for spouses, heirs and legal representatives named in proceedings.
What is a wrongful act?

There are a number of examples of a wrongful act, such as:

  • Breach of trust
  • Breach of duty
  • Neglect/error/omission
  • Libel and slander
  • Misstatement
  • Breach of warranty of authority
  • Wrongful trading


You don’t have to be guilty to incur legal defence costs


Claim Examples

In this section, you can find some example claim scenarios. For a more extensive range of examples, you can find more here

Unfair Dismissal

A director of a medium-sized company was named personally in the unfair dismissal of an employee from the company. The director was required to attend an Employment Tribunal and
offer a defence to the charge. The director had to engage their own legal counsel and fund their own defence costs from personal monies and assets. The case against the director was dismissed. The legal costs remained.


Employee Accidents at Work

The director of a small fireplace retail company was prosecuted following an employee injury. The employee suffered serious fractures and crushing injuries to his leg after a marble fireplace he was attempting to move fell on him. The court heard that the director hadn’t provided training on how to move heavy items and that the proper equipment for the move had also not been provided. The director faced a fine and legal costs.

To find out more about Directors and Officers Liability Insurance contact CCRS Brokers today.

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