Directors’ and officers’ liability insurance, also called D&O insurance provides cover for compensation claims made against the directors and managers (officers) in your business for wrongful acts including breach of duty, neglect, breach of trust, misleading statements, wrongful trading and error.

Cover can also include employment practices liability, with protection against employee discrimination claims including unfair dismissal, harassment or failing to promote an employee.

Directors’ and officers’ liability insurance provides protection for claims made against individuals in your business whilst carrying out their roles as directors or officers.

If there is an allegation of a wrongful act against a director or office of your business, this will need to be investigated in full, and legally defended, even if the allegation does not reach court or a tribunal. The costs for defence against such allegations can be high, so directors’ and officers’ liability insurance can be a vital safeguard against these costs.

Small to medium sized enterprises (SMEs) form a significant proportion of businesses in the UK. These are often family businesses, and their owners sometimes assume that directors’ and officers’ liability insurance is meant only for larger businesses. This is a flawed assumption.

Individual officers and directors of so many businesses could face similar claims to those of large businesses including disgruntled employees, customers and competitors, so the need to protect your family firm from claims of this type is imperative, given the risks of high costs, and perhaps the future of your firm, if you’re not protected.

A specialist broker can help you to arrange the right level of directors’ and officers’ liability cover for your business.

At Andrew Bull Insurance Services our role is to understand your insurance requirements in detail, and search the market for a policy which best meets your needs. Some of the insurance companies we deal with provide specialist policies only to brokers, confirming that we can provide you with cover that is not available on the general market.