• Directors & Officers

Directors & Officers Insurance

Directors and Officers Insurance (D&O Cover) will cover costs incurred in the event of an alleged wrongful act committed by a business director or officer of the company. These claims could be brought against you by employees, regulators, shareholders, investors and third parties. Some of the wrongful acts that would be covered by this policy would be:

  • Breach of duties and contracts
  • Misleading statements and facts
  • Neglect
  • Wrongful trading or practices
  • General errors or mistakes

Who needs directors & officer Insurance?

If your business has directors, officers or senior decision-makers, D&O Insurance is worth considering to help protect them against personal liability.

  • Limited companies
  • SMEs
  • Family businesses
  • Start-ups
  • Charities and non-profits
  • Company directors
  • And more…

As a director or officer of a company you have contractual and legal responsibilities over and above that of a normal employee. These are generally set out in your contracts and terms of employment. If a claim arises your insurance will cover the cost of legal proceedings and defence as well as any compensation incurred. The consequences of not being insured can be financially great and lead to a greater risk of not being able to defend against claims, potentially losing the ability to act as a director and even criminal prosecution depending on the severity on the alleged act.

D&O cover has similarities to other insurance such as Professional indemnity, however it does not cover the whole company, only claims made directly against a director or officer. It best to speak to your broker to discuss this cover and its suitability to your situation.

What Isn’t Covered?

While Directors & Officers Insurance provides valuable protection for directors, officers and senior managers, it’s equally important to understand that there are certain situations and losses that are not typically covered. The exact exclusions will depend on your insurer and policy wording, but common exclusions often include:

  • Deliberate fraud or dishonest acts – Claims arising from intentionally fraudulent, criminal or dishonest behaviour are generally excluded from cover.
  • Illegal personal profit or financial gain – Losses resulting from directors obtaining personal financial benefits they were not legally entitled to receive are typically not insured.
  • Bodily injury or property damage claims – These are usually covered under policies such as Public Liability or Employers’ Liability Insurance rather than Directors & Officers Insurance.
  • Known claims or circumstances – Issues or disputes that were known about before the policy began are generally excluded.
  • Contractual liabilities – Claims arising solely from contractual obligations may not be covered unless specifically included within the policy.
  • Pollution and environmental liabilities – Some policies exclude pollution-related claims unless cover has been specifically extended.

Contact Us
Book Book

Enquiry Form

3 + 0 = ?

Tailored Policy

Because every business faces different risks, it’s important to ensure your policy is tailored to your individual circumstances. At Goldstone Broking Group, we’ll take the time to explain what your policy does and doesn’t cover, helping you choose protection that’s appropriate for your business and reducing the risk of unexpected gaps in cover.