At Mercury, we can help you protect your most senior personnel with a directors and officers insurance policy tailored to your executive team. Rely on our team of experts to offer you invaluable advice when it comes to protecting your most valued personnel.
What is directors and officers insurance?
Directors and officers insurance typically covers the personal liability of directors and officers of a company for losses or advances in legal costs when defending alleged wrongful acts in their capacity as company executives. This can include civil, criminal or regularity proceedings. It does not, however, cover legal costs when defending intentional illegal acts.
Wrongful acts are deemed to include:
- Breach of trust
- Breach of duty
- Breach of Companies Act
- Failure to comply with regulations or laws
- Wrongful trading
Directors and officers insurance coverage
Your policy will cover your executive team for investigations by the Health and Safety Executive (HSE), the Office of Fair Trading, Revenue and Customs (HMRC), shareholders, investors or creditors. It will also cover claims for breach of European legislation and insolvency, along with other alleged wrongful acts, including employee discrimination claims such as unfair dismissal or harassment.
Directors and officers liability insurance does not cover claims against the organisation – it is for claims against a defined person only.
It is also important to note that, while it is easy to identify the directors at your company, officers can relate to anyone holding a managerial position. And while your senior team may seem infallible, they are human, and mistakes can be made. This is why directors and officers insurance is so important.