What is D&O Insurance?
You will have probably heard of Directors & Officers Liability insurance or, as it's sometimes known, Management Liability Insurance but what exactly does it cover and do you need it?
Running a company is undoubtedly a risky business and with litigation on the increase, directors, officers and senior managers cannot afford to leave themselves vulnerable and unprotected. Actions or decisions you make on the company's behalf can leave you exposed to compensation claims, investigations and prosecutions. Without any appropriate insurance cover, you would have to finance your defence from your own resources including the settlement of any successful claim, which could put at risk your home and potentially lead to financial ruin.
Here are some examples of claims covered by a Directors & Officers Liability Insurance policy*:
- When two bakery employees were killed whilst attempting to repair machinery, the MD and several managers were prosecuted for breach of Health & Safety legislation. Their D&O liability insurance policy covered legal costs of £890,000.
- When a carpet wholesale warehouse burnt down, the Managing Director was required to attend a hearing with the Chief Fire Officer to investigate the source of the fire. The D&O liability insurance policy paid for legal costs of £40,000.
- When an employee was immediately sacked for racially abusing and punching a colleague, they brought an unfair dismissal claim against the employer. The employer's legal costs were covered by a D&O liability insurance policy.
To find out more about D&O liability insurance, please contact us on 01202 754900.
*The above claims examples are real claims obtained from AIG / Chartis Insurance via Brokerbility Ltd. They are for illustrative purposes only and are not a guarantee of cover, which is always determined on a case-by-case basis in accordance with policy terms and conditions.
About Alan & Thomas Insurance
Alan & Thomas Insurance Group is a leading Chartered Insurance Broker that specialises in commercial insurance and we work closely with the UK's leading insurers to develop bespoke insurance products for our clients. We are listed in the top 100 independent insurance brokers in the UK and we are also a member of Brokerbility - a network of 37 independent insurance brokers giving us an extended reach across the UK. We are experts in risk management programmes for businesses and organisations, and provide guidance for a wide range of sectors including retail, leisure & hospitality, property, charity, farm and tradesmen.