Do you have Directors & Officers Liability Cover? - Velos

Do you have Directors & Officers Liability Cover?

What is Directors & Officers Liability Insurance?

Directors and officers (D&O) insurance policies provide liability cover for company managers to protect them from claims which may arise from the decisions and actions taken as part of their regular duties.

Any allegations of wrongdoing need to be investigated and defended, and this can come with a significant amount even if the case does not reach court. This means directors and officers personal finances are at risk, so it’s essential companies provide protection through directors and officers (D&O) liability insurance.

What is covered under Directors & Officers Liability insurance?

The main purpose of a D&O policy is to provide financial protection for managers against the consequences of actual or alleged “wrongful acts” when acting in the scope of their managerial duties. The D&O policy will pay for defence costs and financial losses. In addition, extensions to many D&O policies also cover costs for managers generated by administrative and criminal proceedings or during investigations by regulators or criminal prosecutors.

Who is covered under Directors & Officers Liability insurance?

All current, future, and past directors and officers of a company and its subsidiaries are covered under a D&O policy, which can also include non-executive directors. Cover is usually taken out and paid for by the company.

The Reassurance of Directors & Officers Liability insurance

Directors and officers insurance covers costs associated with the defence of an allegation of a wrongful act. This means it takes away the financial risks faced by directors and officers, giving them protection should an allegation or claim be made against them. Considering that even simple investigations can cost thousands purchasing directors and officers makes financial sense.

What is a wrongful act?

This could be a breach of trust, breach of duty, neglect, misleading statement, error, or wrongful trading, committed or attempted by a director or officer whilst acting in this capacity on behalf of the company.

Why are individuals vulnerable?

  • Legal liability is shifting away from companies and towards personal liability.
  • Regulators are now more proactive in investigating companies.
  • Employees know their employment rights and are increasingly likely to pursue legal action..

If you need more advice about the impact of Directors & Officer’s Liability on your business, call the experts at Velos.

Call us now on 0207 929 4058
or email us at insurance@velosgroup.co.uk

Contact Us

Tel: +44 (0)20 7929 4058
Fax: +44 (0)20 7933 9350
Click here to email us

Velos Insurance Services Limited
Notcutt House,
36 Southwark Bridge Road,
London
SE1 9EU
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