Directors & Officers Liability Insurance

Every Business owner should consider Directors & Officers Liability Insurance. With the introduction of the new Consumer Protection Act, business owners are now at risk of being held liable by the client.


In days passed business owners and directors were protected in their personal capacity against litigation against the business. Nowadays the public are able to hold Directors and Officers financially for damages liable in their own personal capacity for errors or omissions. This policy protects the Directors and Officers against a vast majority of potential claims.
Owning a business can be daunting, especially when it comes to the protection of assets in a legal battle. According to the new King III Report as well as the Companies Act 2008 Directors and Officers are to be held liable for errors and omissions made by themselves, or the employees of the company acting in a managerial position. This liability can encompass anything from error, omissions, misstatement, negligence and breach of duty. If the company is find liable the Directors and Officers can be held personally liable for damages even if the business is insolvent.

The cover indemnified the insured for any legal action brought to the company by:

•    Stakeholders  (creditors, suppliers, clients, trade unions and employees)
•    Shareholders
•    Any other party

This insurance covers you for:

•    Legal Defence Costs
•    Investigation Costs
•    Awards (If found liable)

With the above in mind it makes absolute sense to have this cover, no matter how big or small your business is.