What is director and officer insurance coverage?
All directors and officers have different duties and responsibilities in their position, which are set in the job description, if the directors/officer acts outside of their role and mistakes or any wrongful acts are made when running your business, your client can then take legal action against you and end up suing the company as well as the business directors and managers. The director and officer coverage will cover the costs of any compensation claims made. If directors and officer’s insurance wasn’t put in place, you would then have to pay any expenses held against you out of your own finances.
Wrongful acts and examples where clients may end up suing the company;
- Breach of trust- failure to act responsibly for someone who has given you something to keep safe e.g confidential documents
- Breach of duty- The management have not acted in the best interests of an organisation or haven’t performed their duties with care and diligence.
- Neglect- Making a mistake in your work or giving bad advice
- Error-decisions made with poor reasoning and carelessness
- Misleading statements- a misrepresentation of facts by misleading or remaining silent
- Misuse of company funds
- Health and safety or manslaughter claim- An employee/member of the public injured in connection with your business or operations
Get advice on director and officer insurance coverage
If you’re looking for Directors and Officers Liability Insurance cover, 1st Choice Insurance is here to help. Call our friendly, experienced team on 0800 078 7003 – 0300 600 0603 for a no-obligation D & O Insurance quotation or use our Get a Quote Form.