What Can Directors’ and Officers’ Insurance Offer You?

With D&O cover you can rest assured that you're covered from an array of potentially costly legal actions arising from things such as:

• Employment practises and human resource issues
• Failure to comply with regulations or laws
• Negligence or failure to carry out their job adequately
• Financial and or other company reporting errors
• Inaccurate or inadequate disclosure
• Misrepresentation in a prospectus
• Claims arising from investors or shareholders who blame executives personally for either losses or a lack of satisfactory returns
• Inaccurate or inadequate disclosure, e.g. in company accounts
• Decisions exceeding the authority granted to a company officer – in other words someone taking an action that they were not allowed to

Examples of such claims include:

• A slander allegation was made by a customer against a company owner following an argument at a meeting. Having D&O protection in place, the company was able to avoid court action by making a payment that was covered by the policy
• Investors in a replacement window manufacturer sued a company’s directors for losses incurred by them overstating the financial health of the business
• A worker was sacked for gross misconduct after assaulting a colleague at work and for bringing the company into disrepute. The employee sued for unfair dismissal saying he was provoked. The case failed and the business was able to claim back the legal expenses it incurred defending it