Directors And Officers Insurance
Directors & Officers Insurance (D&O Insurance), also known as Management Liability Insurance, is a critical safeguard for UK business leaders, protecting you against personal financial losses arising from legal claims. If your company faces allegations of mismanagement, wrongful acts, or regulatory breaches then this insurance will cover defence costs, settlements and awards, ensuring the directors, officers and senior managers are not left personally liable. For UK businesses, securing robust D&O Insurance isn’t just prudent, it’s a strategic necessity in today’s litigious environment.
We have been providing insurance to local businesses within Greater Manchester for over 35 years. Our expertise gives our clients complete confidence that they will be supplied with a tailored policy to suit their unique business needs.
Insurance for Directors And Officers
Why Directors And Officers Insurance Matters For UK Businesses
Under the UK Companies Act 2006, directors have a legal duty to act in the company’s best interests, prioritising its success over personal gain. Failure to meet these obligations, whether through errors, negligence or breaches of trust can lead to devastating consequences. Directors risk hefty fines, disqualification, criminal charges (including corporate manslaughter) and even the seizure of personal assets like homes, savings or cars.
Claims are not just limited to directors. Senior managers and company officers can also face personal liability for decisions impacting employees, shareholders or regulatory compliance. With rising scrutiny from bodies like the Health & Safety Executive (HSE), Information Commissioner’s Office (ICO), and Financial Conduct Authority (FCA) even groundless allegations can incur crippling legal fees.
What Does Directors And Officers Insurance Cover?
If a director, partner or officer associated with your company is issued with legal proceedings as a result of improper conduct, negligence or error the insured person can be protected against the cost of court fees, suitable legal representation and subsequent fines or damages. We believe it's important to take out D&O cover to give the key individuals within your company the best possible chance of defence, considering that some verdicts can mean disqualification or imprisonment.
D&O Insurance v Management Liability Insurance
D&O primarily protects individuals (directors and officers) from personal liability. Management Liability Insurance is a package policy that typically includes D&O, but also extends coverage to the company itself (Corporate Legal Liability) and often includes Employment Practice Liability.
Key Covers In Policies
Protects individual directors, officers and in some cases, senior managers against any defence costs and damages from claims of wrongful acts, including:
- Defence Costs: This is a core element, covering the legal costs incurred in defending against allegations, investigations (civil, criminal, regulatory), and legal proceedings, even if the allegations are unfounded.
- Damages, Settlements, and Awards: Covers financial losses, settlements, and court-awarded damages that the insured individuals are legally obligated to pay as a result of a claim.
- Breach of Duty/Trust: Covers claims arising from alleged breaches of fiduciary duty, duty of care, or duty of loyalty
- Neglect, Error, Omission: Protects against claims of negligence, errors, or omissions in management decisions.
- Misleading Statements: Covers claims related to inaccurate or misleading statements, particularly in financial or operational reporting.
- Wrongful Trading: Addresses claims made in cases of insolvency or bankruptcy, where directors are accused of wrongful trading.
- Health & Safety Violations: Covers defence costs and, in some cases, certain fines/penalties (where insurable by law) arising from investigations by regulatory bodies (e.g., HMRC, ICO, HSE).
- Shareholder Actions: Covers claims brought by shareholders (e.g., for mismanagement or failure to act in the company's best interest).
Shields the company itself when liability overlaps with individual claims such as:
- Protects the Company: Covers claims made directly against the company for alleged wrongful acts in its management.
- Breach of Contract (Defence Costs): May cover defence costs for certain contractual liability disputes.
- Corporate Manslaughter: Provides financial protection for the company from investigations and legal defence costs arising from corporate manslaughter allegations.
- Health & Safety Prosecutions: Covers the company's legal defence costs and potentially insurable fines related to breaches of health and safety regulations.
- Data Breach/Privacy Issues: Can cover defence costs and certain liabilities related to data breaches and non-compliance with data protection regulations (e.g., GDPR).
- Environmental Claims: Defence for actions taken against the company by the Environment Agency and some funding for assistance in clean-up costs in the event of an accident.
- Breach/Infringement of Copyright: The copyright holder can seek damages and/or an account of profits from the infringing party, which can be substantial.
Covers costs from employee-related claims, such as:
- Unfair Dismissal or Discrimination
- Sexual Harassment Allegations
- Breaches of Employment Contracts
- Other Employment Disputes: Even unfounded claims can cost thousands in legal defence making this cover vital for UK employers
- Employee Dishonesty: Covers financial losses to the company due to fraudulent or dishonest acts by employees (e.g., theft, embezzlement).
Get Covered Now for Directors And Officers Insurance
Don’t leave your directors’ personal assets or your company’s reputation unprotected! Our team have years of experience placing cover for businesses of all sizes across Greater Manchester & the UK. We get to know your employment structure and how your company operates, then build a policy to protect the directors, partners and managers accordingly. We'll do the leg work for you, comparing premiums from a panel of trusted specialist UK insurers. Ultimately, providing you with strong levels of cover at a price you are comfortable with. Get a quote today and ensure compliance, financial security, and peace of mind for your leadership team.
Why B&M Insurance?
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Excellent service over 35 years"B&M always provide excellent help with our various insurance needs, no matter how many changes we make during the year. Fully recommend"
