As a sole trader or limited company contractor, you enjoy all the freedom that comes with being your own boss, but there are downsides. Perhaps the biggest drawback is that you’re held personally liable if a client, a regulator, or the HMRC believes you’ve broken the rules. That’s why Directors’ and Officers’ cover from Kingsbridge forms part of the insurance package and is included in many small business owners’ insurance armoury.

What is directors’ and officers’ insurance?

Directors’ and officers’ liability insurance, often known as D&O insurance, covers directors and officers of a company against compensation claims if they are alleged to have committed wrongful acts. An officer is defined as a non-director who performs a key management role.

If you’re sued or prosecuted, directors’ and officers’ insurance covers any legal fees and compensation awards that could arise as a result.

What does directors’ and officers’ liability insurance cover?

What might you be accused of if you need to make a D&O insurance claim? Examples include:

  • Health and safety issues
  • Breaches of company law
  • Negligence
  • Defamation
  • Financial mismanagement
  • Legislative breaches.

Such cases can potentially lead to fines, penalties, or compensation awards amounting to hundreds of thousands of pounds. Even smaller amounts are enough to bring down a small contracting business—unless you can claim the money back. However, with D&O insurance from Kingsbridge in place, you have up to £100,000 in protection.

Why do I need directors’ and officers’ liability insurance?

D&O liability insurance can help protect you and your business from a variety of claims, including those made by:

  • Employees
  • Members of the public
  • Investors
  • Regulators
  • Suppliers
  • Contractors.

If directors and officers don’t have the right insurance, they face more than just compensation claims. Without the means to defend themselves, they also run a greater risk of:

  • Disqualification from holding the position of director
  • Civil proceedings, which can lead to high legal costs and awards for damages
  • Criminal prosecution, which can lead to fines and imprisonment.

Why choose Kingsbridge?

  • We are specialist insurers of trade professionals, contractors, freelancers, and sole traders
  • Our directors’ and officers’ insurance is included as part of our core contractor’s insurance policy, along with professional indemnity, public liability and employers’ liability protection
  • Kingsbridge price promise means if you find cheaper cover elsewhere, we’ll match the quote
  • No hidden fees or charges
  • All policies are underwritten by A rated insurers.

If you’d like to know more, simply give one of our team a call on 01242 808 740 or get a quote online. Full terms, conditions, and exclusions are found here.

 

Frequently Asked Questions

  • Do I have to have directors’ and officers’ liability insurance?
  • No, it is not mandatory. However, the risks of significant financial losses or professional disqualification are high so it’s a sensible precaution. Lawyers often encourage people with a grievance to pursue their claims in court. Directors’ and officers’ liability insurance covers the cost of defending such cases, as well as any compensation costs that may follow an unsuccessful defence. Small businesses can be vulnerable due to the costs associated with such claims.

  • How much does directors’ and officers’ liability insurance cost?
  • D&O cover is included within our contractor’s insurance package as standard. With one comprehensive policy, you benefit from protection against a wide range of risks and claims. For an exact price, get a quote online in minutes.

  • What is NOT covered by directors’ and officers’ insurance?
  • Directors’ and officers’ liability does not cover claims made against your company or organisation. The cover is limited to allegations made against individuals for alleged wrongful acts carried out in their capacity as directors or officers.

  • What is the difference between D&O liability & employers’ liability?
  • Directors’ and officers’ insurance covers individuals, whereas other policy types such as employers’ liability shield your business.