Directors & Officers Insurance | Liability Cover For Directors
Directors & Officers Insurance
As a director or senior officer in a company the risks you take on will extend beyond just the organisation itself, you could in fact be held personally liable for decisions made in your role. If a claim is brought against you, be it from; shareholder regulatory bodies (i.e the FCA), or even internally from employees of the company itself–the financial consequences could be severe.
Directors & Officers (D&O) Insurance is the firewall that protects you in these situations. It is there to help in covering legal costs, compensation payments, and other critical expenses that arise from claims against company leadership.
Directors can find themselves facing investigations, disqualification from their position, or even personal financial ruin. At East Yorkshire Insurance Brokers (EYIB), we can help you put the right level of D&O insurance in place to give you peace of mind that one lawsuit doesn’t derail everything you’ve built.
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Local Businesses
Access To Over 300
Insurance Markets
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EYIB 4.9/5 Stars
Trusted By 250+ Local Businesses
Access To Over 300 Insurance Markets
Our Clients Rate EYIB 4.9/5 Stars
What Is Directors & Officers Insurance?
What Is It?
Office & Director Liability Insurance is, in essence, the personal financial safety net for company leadership. Designed to cover potential legal costs, compensation payments and other expenses, its purpose is protecting you if a director or senior officer faces claims related to their decisions while running a company.
Many people assume (mistakenly) that Professional Indemnity (PI) Insurance and D&O Insurance serve the same purpose, but they protect against very different risks. PI Insurance covers a business against claims of negligence, errors, or poor advice given to clients. D&O insurance, in contrast, protects the individuals, the directors and the officers whose job it is to run the company, against claims of mismanagement or misconduct.
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Why Choose EYIB For D&O Insurance?
Why Choose EYIB
Over a Decade of Experience
We have over 15 years of experience in helping businesses find the right insurance and know there are unique risks faced by directors of different companies and will work to make sure we get you the right policies in place.
Over 250 Local Clients
Over 250 companies of all different sizes and trades trust us for their commercial insurance policies, it’s because we genuinely take the time to understand them rather than providing simple off-the-shelf advice they could find elsewhere.
Over 300 Markets
As an established commercial brokerage we have access to over 300 insurers which means we can give you the best policy options based on whatever specific requirements your company has.
Years Experience
Local Businesses Insured
Insurers
Our Insurance Partners
What’s Covered By A Directors And Officers Policy?
What’s Included?
Various Legal Costs
Claims could be brought against you as a director personally for many reasons. Employees could launch claims for sexual harassment, shareholders for mismanagement of funds, or a regulatory body if you’ve committed malpractice to name just three. A directors and officers policy will help cover the costs involved in these and make sure you’re not paying for them out of your own pocket.
Compensation Payments
Compensation Payments
Investigation Costs
Major regulatory bodies in the UK like the FCA and HMRC have the power to launch investigations into company directors. You may well not have done anything wrong at all, but there’ll still be the costs of legal representation and any compliance which can soon add up. Officer and director liability insurance allows you to have the funds available to cover this and put a proper defence in place.
Director Disqualification Proceedings
In the most serious claims of misconduct and mismanagement levied against directors and offices, the end result could be that directors being banned from holding company positions in the future. Fighting disqualification proceedings requires specialist legal representation, which is covered under your D&O policy.
Director Disqualification Proceedings
Personal Liability for Corporate Tax
Although for most limited companies it is uncommon, there are certain circumstances under which HMRC can make directors and officers liable to pay corporate taxes in the event of an insolvency or liquidation. If, however, you have insurance for directors liability then it can help cover the costs of getting a necessary legal defence in place.
How Much Does It Cost?
As with every kind of insurance, it isn’t one-size-fits-all when it comes to insurance for directors liability. It’s going to depend on all the usual things like the size of your business, the industry you operate in, and the level of risk exposure to determine the cost of your directors and officers policy.
For example, a tech startup handling investor funds or a financial services firm regulated by the FCA will generally face higher risks than a small private company with minimal external stakeholders. If your company has a history of claims, ongoing regulatory scrutiny, or operates in a high-liability sector, insurers will factor this into the cost of cover.
If you want a tailored quote for Directors & Officers Insurance, get in touch with East Yorkshire Insurance Brokers (EYIB) today. We’ll compare policies from many different markets in order to get you a quote that fits your needs.
How Much Does Directors & Officers Insurance Cost?
How Much Does It Cost?
Do I Need A Directors & Officers Policy?
Do I Need It?
We recommend that you do! If you’re a company director or a senior officer in a company then you’re going to be exposed to legal action in ways that standard business insurance won’t cover. Many directors will assume that certain claims wouldn’t happen to them, until they do!
Without Directors & Officers Insurance, you could be left personally liable for legal defence costs, compensation claims, or even being banned from holding company positions in the future.
Even in the event that you’ve done nothing wrong but still find yourself being sued or investigated, the entire process of defending yourself can be time-consuming and expensive. D&O insurance ensures that you have the financial protection in place to fight these claims properly!
A Scenario Of How D&O Insurance Protects You
Mark is the Managing Director of a mid-sized financial services firm. His company has been growing steadily, attracting new investors and expanding its client base. However, a group of shareholders claim that a recent business decision resulted in financial losses, and they decide to take legal action against him personally.
Despite making decisions in what he believed to be the best interests of the company, Mark is now facing an expensive legal battle, with accusations of mismanagement and breach of fiduciary duty. Without Directors & Officers Insurance, he would have to fund his own legal defence, risking tens of thousands of pounds—if not more—out of his personal assets.
Thankfully, Mark has a D&O policy in place. His insurance covers his legal defence costs, potential compensation payments, and settlement fees if the case doesn’t go in his favour. As a result, Mark is able to fight the claim properly without worrying about personal financial ruin.
More Examples Of A Directors And Officers Policy In Action
D&O Claim Examples
A director at a property development firm is investigated by the FCA for alleged compliance breaches. Even though no wrongdoing is found, the cost of legal representation and responding to the investigation is significant. D&O Insurance covers these expenses, which meant that this director wasn’t burning through their own cash to put together a defence.
A senior officer at a tech company is accused of unfair dismissal by a former employee. The employee takes legal action, seeking compensation. Without the addition of Employment Practice Liability within their D&O insurance, the director could be personally liable for legal defence costs and any settlement.
What Our Clients Think
John was amazing—friendly, patient, and full of great advice. He really took the time to understand our charity and made sure we got exactly the right insurance. Highly recommend East Yorkshire Insurance Brokers
Billy Dasein
East Marsh United
Sarah provided excellent service, taking the time to review our sums insured and ensure everything was accurate. She pointed out gaps in our cover we weren’t aware of and explained everything clearly. We feel much more confident now. Highly recommend East Yorkshire Insurance Brokers!
Connor Hewson
Assured Marketing
East Yorkshire Insurance Brokers have looked after our insurance for several years, and we’re always impressed by the great service they provide. They’re professional, reliable, and always find us a competitive deal. Couldn’t ask for better!
Jason Kay
H2MO Limited
Introducing Your D&O Insurance Broker
Your Dedicated Insurance Broker
Meet John, the MD here at EYIB, with over 15 years of experience John knows exactly what’s needed to protect company directors and senior officers from the financial risks that come with leadership.
From your initial contact with EYIB, John and the team will make sure they actually take the time to understand your business and to properly assess the risks you may face.
Don’t leave yourself exposed, get in touch with John at East Yorkshire Insurance Brokers (EYIB) today and secure the right Directors & Officers Insurance policy!
What does Directors & Officers Insurance cover?
D&O Insurance covers legal defence costs, compensation payments, and investigation expenses if a claim is made against a company director or senior officer. It protects against claims from shareholders, regulators, employees, or other third parties.
What does Directors & Officers Insurance cover?
Who needs Directors & Officers Insurance?
Any company director or senior officer should consider D&O cover. If you hold a leadership role, you could be personally liable for decisions made within the business, even if they were in the company’s best interests at the time.
Is D&O Insurance only for large corporations?
No! Small and medium-sized businesses are just as vulnerable to claims, if not more so, as they often don’t have the financial resources to cover expensive legal defence costs.