What is directors' and officers' liability insurance?
As a sole trader or limited company contractor running your own business, you can be held personally liable for many reasons. Action can be taken against you by a regulator, your client, or the taxman if they think you haven't been sticking to the rules.
Directors’ and officers’ liability insurance (D&O for short) protects you against these types of claims, which could quickly rack up into the hundreds of thousands of pounds even if you’ve not done anything wrong.
What does directors' and officers' liability provide cover for?
Directors' and officers' liability insurance provides a valuable safety net should a claim be made against you, covering any legal fees and defence costs that could arise as a result. You could be held responsible if your business is accused of financial mismanagement, a legislative breach, a health and safety failure, or a breach of company law.
You can see exactly what you're covered for with our package insurance cover on our What's Included page.
Do you have any example directors' and officers' liability claims?
Claim Example 1:
A civil engineer accepted a contractor with one company, but there were then delays in adding them to the contract. During the delay, the civil engineer was offered another role in Portugal, with the offer of additional work. A decision was made by the civil engineer not to honour their original contract and to take the work in Portugal instead. The other company subsequently sued for breach of contract, but the civil engineer was protected by their directors' and officers' liability insurance.
Claim Example 2:
A design engineer failed to submit the accounts for their limited company to the Registrar of Companies within the permitted time frame. They were prosecuted under the Companies Act and made to pay court costs, as well as fees for their legal defence. The design engineer held directors' and officers' liability insurance and was able to claim on their policy.
How do I purchase a Kingsbridge directors' and officers' liability policy?
Our D&O policy is available as an add-on to our core professional indemnity, public liability and employers’ liability package insurance product at checkout. Unfortunately this policy is currently unavailable to add on part way through your policy year, but we can make sure it’s added at renewal.