Directors' and Officers' Insurance

One for all and all for one

Insurance for Directors and Officers of companies 

Shared culpability is how the legal system views directors and officers of an organisation - even non-executive directors can be held liable for the actions of other directors. Which means you could end up fighting a court battle over something your colleague did, even if you didn’t know they were doing it.

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.

There are plenty of insurers willing to take on this risk: the challenge is choosing the right one.   


What does Directors’ and Officers’ insurance cover?

Directors’ and Officers’ (D&O) liability insurance gives financial protection in the event you are sued personally. D&O protects you from claims made against you or your co-directors within the scope of your everyday business. It is there to cover you for legal costs as well as any damages. 


D&O claims breakdown

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

  • Scrutinising the contract icon large


    4 in 10 D&O claims relate to regulatory governance

  • Speaking up icon

    Clients / competitors

    3 in 10 claims arise from clients or competitors

  • Subtle word in your ear large icon


    2 in 10 claims come from disgruntled employees


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

D&O 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 rigorously defended: otherwise, there is a risk of judgement being entered in default of a defence. 

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

Protect your family from your business

Because you never know what's around the corner

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+31 (0)10 720 0620

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Visit us at: Veerhaven 7, 3016 CJ Rotterdam