Directors & Officers

What is Directors and Officers insurance?

Directors and Officers insurance covers damages and claims expenses associated with a claim made against your business's directors and officers for alleged wrongful acts.

What does Directors and Officers insurance cover?

Wrongful acts include:

• Negligence
• Errors or omissions
• Breach of duty
• Breach of trust
• Misrepresentation or misstatement
• Defamatory statements, libel or slander

Directors and Officers includes past or present directors, officers or members of the board of directors, an employee who has a managerial or supervisory function or who is named in the claim and the director or officer's lawful spouse or domestic partner.

Do I need Directors and Officers insurance?

This type of insurance covers damages and claims expenses associated with a claim made against your business's directors and officers for alleged wrongful acts, this could be from investors, your shareholders or the regulators. If your company has directors then it is recommended that you have this insurance in place. You can add it to your Professional Indemnity policy with Tapoly.

If this cover isn't in place then your management faces a greater risk of financial loss and of not being able to defend themselves against any claim. Having this cover in place can help you to recruit the best people to manage your company, as it offers them protection.

Is Directors and Officers required by law?

No, it isn't compulsory under UK law, but if this cover isn't in place then your Directors and Officers face a greater risk of financial loss and of not being able to defend themselves against any claim.

How much Directors and Officers insurance do I need?

The level of liability you choose is the maximum amount of money that your insurer will pay for claims made against your management for a wrongful act that occurred during the policy period.

There is no set level that you are required to have in place but it should be based on the how much the company can afford (its financial strength) and its tolerance to risk.

How much does Directors and Officers insurance cost?

The cost will depend on several factors, for example, the age and financial strength of the company, the company's activities, and the company's location. The best way to find out how much it will cost is to get a quick quote. You can add Directors and Officers insurance to your Professional Indemnity cover with Tapoly.

What's not covered by Directors and Officers insurance?

Directors and Officers insurance protects your management from being sued for alleged wrongful acts.

It does not cover you for accidents involving your clients or members of the public. This would be covered by Public Liability insurance. Accidents involving your staff would be covered by Employer's Liability insurance.

It does not cover you if you make a mistake during the course of your work that causes financial loss. This would be covered by Professional Indemnity.