Directors' & Officers' Liability insurance

Shared culpability is how the legal system views Directors' and Officers' (D&O) of an organisation: you could end up fighting a court battle over something your colleague did, even if you didn’t know. D&O protects you against claims made against you or your co-directors within the scope of your everyday business. 

There are plenty of insurers willing to take on this risk. The challenge is choosing the right one. Your Howden risk consultant will endeavour to secure the most comprehensive protection for you, at the right price.   
 

What does Directors’ and Officers’ Liability Insurance cover?

In the event you are sued personally, D&O Liability Insurance is there to pay for costs relating to mounting a defence, and any damages or settlements relating to the matter. 

Any allegation made by a third party against a director or officer, no matter how frivolous, needs to be vigorously defended. Otherwise, there is a risk of judgement being entered in default of a defence. 

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

How do claims come about?

Directors’ personal liability for the performance of a company is unlimited. If the shareholders want to sue for mismanagement, they can - and do, quite frequently. 

The last few years have seen a rise in claims on directors’ and officers’ policies, due to more stringent governance guidelines and increased oversight by regulators.

Other areas that give rise to claims include:

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

Directors and officers can be held liable for their own actions and inactions – and the actions of their co-directors. Getting the right protection in place means you can do business with confidence.   
 

What does good D&O Liability Insurance look like? What to look out for:

• Damages and claimant’s costs
• Legal costs for a successful defence against allegations
• Representation at official investigations and inquiries
• Entity cover for employment practices liability claims
• Allegations made by fellow directors, officers, or employees
• Retired directors

Coverage extensions:

• Regulatory crisis costs
• Extradition Proceedings
• Emergency costs
• Civil Penalties and fines
• Extended Discovery Period