Directors & Officers Liability Insurance (D&O)

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Why buy
Directors & Officers Liability Insurance ?

The decision to buy D&O insurance is in many ways the easiest one to make of all insurance purchases for your business.
Your other policies typically cover your company’s losses and liabilities, whereas D&O is a cover that applies to your personal ones.
You can be personally liable for your actions as a manager of a company, and that liability can extend beyond the company’s assets to your own.
That’s what a D&O policy is basically designed to protect – your personal assets.

What is D&O Insurance ?

D&O insurance covers the managers of the company for their personal liability arising out of their management of the company. It can also in some instances cover the liability of the company itself.

What is Covered?

Tipically it covers things like:

Damages and settlements, together with legal costs incurred against directors and officers for liability arising out of company management.

Costs associated with investigations brought by regulators.

Statutory fines and penalties.

Spousal liability

What is not covered?

Examples of typical exclusions are:

Loss arising out or property damage or personal injury

Breaches of your duty of professional services (these are covered under a Professional Indemnity policy)

Fraud or deliberately unlawful acts

Claims from insolvency of the company

Claims or circumstances that you knew about before you incepted the policy

How much does D&O Insurance cost?

There are two main factors that influence the cost of the policy:


1 Factor 1 – the size and type of your business, the bigger your revenue and assets the more insurers charge

2 Factor 2 – the amount of insurance (the limit) you choose. The amount insurers charge increases with the amount of limit that you choose to buy