Directors' & Officers' Insurance

Expert protection for your business

The legal system views directors and officers of an organisation as having shared culpability - this is often referred to as being ‘jointly and severally liable’.

Even non-executive directors can be held liable for the actions of other directors, which means you could end up fighting a costly legal battle over the actions of a colleague, even if you didn't know about it.

Over the last few years, tougher guidelines and increased oversight by regulators have seen a rise in claims on Directors’ and Officers’ policies. 

Although many insurers are willing to take on the risks, it's vital that you find one that's the right fit for your business.   
 

What does Directors’ and Officers’ insurance cover?

Directors’ and Officers’ (D&O) liability insurance protects you financially in the event you are personally sued. D&O protects you against claims made against you or your co-directors within the scope of your everyday business. It covers your legal costs as well as any damages you may incur. 
 

What to look for in a D&O insurance policy

D&O insurance would cover costs relating to mounting a legal defence, as well as any damages or settlements relating to the proceedings. No matter how frivolous, if allegations are made by a third party against a director or officer, they need to be vigorously defended, or else there is a risk of judgement being entered in default of a defence.

Directors and officers can be held liable for both actions and inactions, as well as the actions of their co-directors. A directors’ personal liability for the performance of a company is unlimited - shareholders can and frequently do sue for mismanagement if they choose to. 

Features of your D&O cover should include:

  • Entity cover for employment practices liability claims
  • Official investigations 
  • Crisis management
  • Entity cover for securities claims (for listed companies)
  • Retired directors

Other areas that give rise to claims can include:

  • Positions on outside boards 
  • Wrongful termination, sexual harassment or discrimination 
  • Initial public offerings 

D&O claims breakdown

According to claims figures from a leading D&O insurer, you need to worry about:

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Regulators

4 in 10 D&O claims relate to regulatory governance

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Clients / competitors

3 in 10 claims arise from clients or competitors

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Employees

2 in 10 claims come from disgruntled employees

Protect your family from your business

Because you never know what's round the corner

Contact us today

Call our team  on +372 6 144 400 or drop us a quick message and we'll get back to you as soon as possible.

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