The Directors, Officers and Senior Employees of a company can be personally liable for the decisions they make. Not to mention, this liability is unlimited, which means individuals cannot hide behind the corporate body that employs them.

Directors’ and Officers’ liability insurance offers security in respect of claims brought against you for actual or alleged breach of duty, neglect, errors or omissions and mis-statements. If you are accused of breaching your duties, actions can be brought against you personally, with potentially disastrous consequences, which is why this insurance is so important.

Claims can be made by an ever-widening source, including the Health & Safety Executive, employees, banks, environmental groups, regulatory bodies, creditors, customers, shareholders and suppliers.

Typical statutory exposures include the Companies Act (over 200 offences), Insolvency Act (Wrongful Trading), Health & Safety at Work Act, Data Protection Act, Company Directors Disqualification Act. Consumer protection legislation, Corporate Manslaughter Act, Financial Services Act, Company Securities (Insider Dealing) Act, EC Directives and Regulations, and Racial & Sexual Discrimination legislation.

As well as protecting Directors & Officers, this policy protects the Director’s personal holding in the company, rather than leaving the company to fund its own defence. If required, the policy can be extended to provide cover for breach of contract, misconduct, unfair dismissal, environmental prosecution and fraud.