Directors & Officers’ Insurance
Clear protection for business leaders when it matters most.
What is Directors & Officers’ Insurance?
Directors & Officers’ (D&O) Insurance helps protect the people making key decisions if they’re accused of wrongdoing in their role, helping mitigate the personal risk.
It is designed to protect directors, officers, and senior managers of a business if a claim is made against them for alleged wrongful acts committed while managing the company.
In simple terms, it helps cover the legal costs and potential compensation if a director or officer is personally held responsible for decisions they’ve made – even when acting honestly and in the company’s best interests.
D&O Insurance is relevant to any business with a board of directors, senior decision-makers, or external regulatory oversight. This includes SMEs, start‑ups seeking investment, established businesses, and charitable organisations.
What is included in Directors & Officers’ Insurance?
It is important to note that cover can vary depending on the insurer and policy wording.
D&O Insurance typically includes protection for claims arising from:
- Breach of duty or trust
- Negligence or errors in decision-making
- Misrepresentation or misleading statements
- Failure to comply with statutory duties
- Employment practice allegations.
D&O Insurance is designed to protect individual directors and officers, even if the company itself cannot indemnify them.
Optional cover extensions:
- Legal defence costs
- Settlements or compensation awards
- Investigation costs linked to regulatory or official enquiries.
Why Do You Need Directors & Officers’ (D&O) Insurance?
Directors can be held personally liable for decisions they make on behalf of the business, and the claims do not only come from customers.
Potential claimants may include:
- Employees
- Shareholders
- Investors
- Regulators
- Competitors
- Suppliers
Having D&O Insurance helps attract and retain senior leadership, reassure investors and stakeholders, and meet contractual or funding requirements.
Even if a claim is unfounded, legal defence costs alone can be significant. This policy provides financial protection and peace of mind, allowing directors to focus on running the business with confidence.
Why choose Kingfisher Insurance?
Commercial Insurance Experts
Access to different insurance providers to provide suitable cover for your business.
Exceptional Service
A great service from a knowledgeable, friendly, UK-based team.
Tailored Policies
Specifically tailored to your business needs and its risk profile.
Frequently Asked Questions
Is D&O Insurance a legal requirement?
No – D&O Insurance is not a legal requirement. However, several directors choose to have cover in place due to the personal financial exposure that comes with their role.
Does D&O Insurance cover the company or the individual?
D&O Insurance primarily protects the individual directors and officers. However, some policies will offer cover to the company itself, but the main focus of the policy is personal liability.
Are former directors covered on the policy?
Many policies do include cover for former, current, and future directors, provided the claim relates to actions taken while they held the position within the business.
Will it cover claims made by employees?
This depends on the policy. Claims arising from employment practices – such as discrimination or wrongful dismissal – may be covered. However, this varies, so it’s important to review the policy wording.
What isn’t covered by D&O Insurance?
Typically, D&O Insurance does not cover fraudulent or dishonest acts, criminal activity, or deliberate wrongdoing. Any exclusions will be set out within the policy wording.
How much D&O cover do we need?
This will vary depending on factors such as:
– Company size and turnover
– Industry and risk exposure
– Number of directors and officers
– Regulatory environment
Our commercial insurance specialists can discuss your needs and arrange an appropriate policy based on these factors and the risk exposure.
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