Directors & Officers

Directors and Officers face unlimited liability. You can protect yourself against this.

Your personal wealth and security are at risk!

Whilst this insurance is for many an after thought it is the only insurance that your business might purchase that is for the sole intention of protecting those people that make the company tick – the company directors & officers. As a company director, you have a multitude of diverse responsibilities calling for prompt decisions and concise action. In today’s increasingly litigious world, this can be a deceptively serious responsibility to shoulder.

The duties of a director have been established through statutes, regulations and case law and can be broken down into various areas. The duty of care and skill, for example, is a common law duty requiring directors to act with "the care an ordinary man would take in the same circumstances on his own behalf", and with the skill expected from someone with his particular knowledge and experience. Directors also have a fiduciary duty to act honestly, in good faith and in the best interests of the company and must ensure that there are no conflicts of interest. There are also many statutes that affect the conduct of directors and officers, including the Companies Act 1985, Insolvency Act 1986, Financial Services Act 1986, Environmental Protection Act 1990, Health and Safety at Work Act 1974, to name a few.

If a Director is perceived to have failed in any of their duties, then a claim could come from any number of third party sources, including shareholders, creditors, regulatory bodies, the Health and Safety Executive, employees, auditors, liquidators, customers and suppliers. How would a director or officer find the legal costs necessary to defend themselves and to meet any awards made against them? Directors may be aware that that the Companies Act has 250 civil and criminal offences with which directors can be charged. Sanctions against directors are continually increasing with "Corporate Manslaughter" recently added to the list. Cover is affordable, too, with premiums starting from as little as £100.00, and therefore this protection no longer needs to be thought of as only necessary or affordable by larger businesses. The cover is also tax effective as it is purchased by the Company and is a business expense.

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