Directors and officers insurance

In reality, company directors and officers can be held personally accountable for poor decisions, mismanagement and other breaches of the Companies Act, even if their actions were done with the best intentions.

Allegations of negligence by directors and officers can be very costly to defend. Without directors’ and officers’ insurance (also known as D&O insurance), you may have to pay defence and compensation payments out of your personal wealth.

What is directors’ and officers’ insurance?

Directors’ and officers’ insurance offers vital protection for you as a company director or officer. It pays your legal defence costs and damages that you are legally liable to pay to other parties following a wrongful act committed by you in your capacity as a company director or officer. This can include:

• Actions brought by liquidators who suspect wrongful trading or incorrect payments to creditors
• Actions brought by HMRC where insolvent trading or misappropriation of tax payments is suspected
• HSE investigations where negligence is suspected
• Police and SFO investigations where fraud is suspected

Why do directors and officers need insurance?

Personal claims or proceedings against directors or officers can arise from any decision made or act carried out in the workplace, however innocuous it may have seemed at the time.

Claims and proceedings where directors’ liability can be involved also typically include:

• Claims by investors and shareholders who blame directors personally for losses
• Actions brought by liquidators who suspect wrongful trading or incorrect payments to creditors
• Actions brought by HMRC who suspect insolvent trading or misappropriation of tax payments
• HSE investigations where negligence is suspected
• Police and SFO investigations where fraud is suspected

Get directors’ and officers’ insurance UK – wide cover today. Call Markel Direct on 0371 705 2132.

Who needs directors’ and officers’ insurance?

It’s important to note that while the legal definition of a director is reasonably clear, the legal definition of an officer is vague enough to allow claims or proceedings to be issued against people in almost any managerial or supervisory position.

So while you may be confident that all of your company's directors are aware of their legal responsibilities, it is vital to understand that problems can be caused inadvertently by individuals at many levels of an organisation. In that sense, having directors’ and officers’ liability cover in place mitigates the potential risk across the business.

To learn more about company director insurance, Read our ‘What is Directors’ and Officers’ Insurance?’ article.

Get a D&O insurance quote now

What does directors’ and officers’ insurance cover?

Our D&O liability insurance covers your legal liability as a director or officers of the company, as well as your legal costs and expenses in respect of:

• The defence of any legal action seeking your disqualification as a director
• Any investigations
• Extradition proceedings (including appeals)
• PR crisis management – dealing with adverse press, publicity or media attention in the UK

Our directors’ & officers’ liability claims team can often help you to defuse difficult situations at the first sign of trouble; minimising the risk of a frivolous claim, or helping you direct claims or proceedings towards the company rather than individuals.

Should proceedings arise, our directors’ indemnity insurance covers a wide range of scenarios: from legal costs and damages where actionable mistakes have been made, through to arranging and paying for legal representation throughout lengthy and expensive official investigations. We can even arrange legal representation at a police station in the event of a director or officer's arrest.

Having directors’ insurance in such situations can be invaluable.

Why choose Markel Direct for directors’ and officers’ insurance?

✔ Legal advice 24/7
No need to wait for answers when facing a legal claim.
Our experienced solicitors are available to customers 24 hours a day, seven days a week.

✔ Quick quotes
Get a quote in as little as 90 seconds by filling in our easy online form.

✔ Customer satisfaction
Consistent and excellent service for our customers, as proven by our high ratings on Feefo.com

✔ Transparent fees
No hidden fees. If you want to change or cancel a policy, you won’t incur any extra fees either.

✔ Over 25 years’ experience
At Markel Direct, our business insurance policies have been designed to cover the risks facing your industry. For a directors’ and officers’ insurance quote, get an online quote or speak to our team today on 0371 705 2132.

Get a D&O insurance quote now

How much does directors’ and officers’ insurance cost?

D and O insurance is available from £5 a month* - get an online quote now or call us on 0371 705 2132.

You’ll receive instant proof of cover, meaning your directors and officers are immediately protected.

*Price based on a business consultant requiring £25,000 of directors’ and officers’ insurance.