Directors' and Officers'
Insurance
Directors' and Officers' (D&O) insurance provides financial protection for individuals serving as directors, officers, or executives of a company.
It is designed to protect from personal losses. D&O insurance is designed to cover legal expenses, settlements, and judgments that may arise from lawsuits against directors and officers personally. It is an important risk management tool for companies and their executives, as it helps attract and retain talented individuals for key leadership positions by providing assurance against personal financial liability resulting from their management decisions. It also protects the financial interests of shareholders and stakeholders by ensuring that directors and officers can fulfill their duties without undue personal risk.
Do you need Directors' and Officers' Insurance?
If you hold a leadership position within a company, whether your title is partner, director, general manager, officer or something else, you may need Directors’ and Officers’ Insurance. The key factor is your level of responsibility. If you make significant decisions about your business, then this type of cover is likely to be needed.
The key components of Directors' and Officers' Insurance
Coverage for Individuals
D&O insurance provides coverage for the personal assets of directors and officers in the event they are personally sued for alleged wrongful acts or decisions made in their capacity as company executives.
Protection Against Legal Action
D&O insurance typically covers legal expenses incurred in defending against legal action, including solicitor fees, court costs, and settlements or judgments if the case is decided against the insured individuals.
Wide Range of Allegations
D&O insurance covers a broad spectrum of claims, including allegations of breach of fiduciary duty, negligence, mismanagement, conflicts of interest, errors in judgment, and violations of laws or regulations.
Corporate Reimbursement
D&O insurance may also provide coverage for the company itself (corporate reimbursement coverage) if it indemnifies directors and officers for legal expenses incurred in defending against lawsuits.
Side A Coverage
Some D&O insurance policies offer “Side A” coverage, which specifically protects individual directors and officers when the company is unable or legally prohibited from indemnifying them. Side A coverage is particularly important in cases where the company becomes insolvent or is unwilling to indemnify its executives.
Entity Coverage
D&O insurance policies may include “entity coverage,” which extends protection to the company itself for certain types of claims brought directly against the organization, such as securities litigation or shareholder derivative actions.
Customisable Coverage
D&O insurance policies can be tailored to meet the specific needs of different types of companies, including public companies, private companies, non-profit organizations, and educational institutions. Coverage limits, deductibles, and policy terms can be customized based on the company’s size, industry, and risk profile.
How much Directors' and Officers' cover do you need?
It depends on your business type and your role, as both have an impact on the types of risks you could face. The size of your company is also important. If you are responsible for a large organisation this naturally means that negligence claims will come with higher values attached to them, requiring a higher level of indemnity. We ensure your policy is tailored to you, so we’ll work with you to create the right coverage for you.
Step 1
Your business
We meet with you to understand your unique business and the risks it faces.
Step 2
The market
We will take the information and research the market to find the most suitable policy.
Step 3
Your cover
Once you have agreed, we put your policy in place and you are covered.
If you have an insurance need then please get in touch
At Minories Partnership we work with our clients to construct the most appropriate insurance programme for their specific needs. And we’d be delighted to do the same for you. Get in touch and we can talk to you about your needs with no obligation.
