Directors And Officers Liability Insurance

What is directors’ and officers’ liability insurance?

Directors’ and officers’ liability insurance is also known as management liability insurance or even board of directors’ insurance. This cover protects those that are directors, partners and officers at companies in the event of a claim being made against them.

Cover the cost

When you are a director, partner or office of a company, you are responsible to employees, investors, regulators and members of the public. Claims may be made against you after certain actions are carried out, or when specific omissions are made. When you have the right insurance in place, you can fund the costs of employment claims, health and safety and, in worst-case scenarios, manslaughter claims. You may also get cover for claims arising from defamation, negligence or breaches of duty or trust. Other wrongful acts that may lead to claims include errors, misleading statements and wrongful trading.

The risks of going uninsured

Proceedings may be brought against directors and officers if they have acted outside of terms of reference. This insurance covers the cost of defending civil, regulatory or criminal proceedings and can cover compensation if your defence is not successful. When the right insurance is not in place, directors and officers have a bigger chance of being disqualified from being directors and facing fines, substantial legal costs and even imprisonment in some cases.

Personal culpability

Some directors wrongfully believe that they have no personal liability in relation to their corporate activities. However, this is not true. Even when public liability insurance protects the companies that they work for, it is vital to arrange cover for individuals. Claims can be made against directors and officers following all kinds of acts and decisions made in the workplace. Action may be taken by shareholders and investors who blame individuals for loss of income, liquidators who think wrongful trading has taken place, by HMRC and during investigations carried out by the police and HSE. The definition of an officer is vaguer than that of a director, which means a wide range of employees with supervisory or managerial duties could also have action taken against them.

How we can help

At Thompson Insurance, we can come to your assistance if you need to arrange director’s and officer’s liability insurance. We can support you in a number of ways, including redirecting claims towards companies rather than individuals if possible and reducing the chances of flippant but time-consuming and stress-inducing claims being made. The insurance can cover legal costs and damages following mistakes made by individuals as well as the expense of legal representation. Cover is more affordable than you might think, yet the peace of mind that it delivers may be worth its weight in gold.

Contact us

We have many years of experience behind us and can be counted on to deliver the insurance solutions that you are looking for. We can provide you with tailored cover to meet your specific business requirements and leave no stone unturned until we have sourced the ideal cover for your needs. You can contact us today by calling 0121 796 0123, by sending an email to or by completing the form on the website. We can help you whether you require commercial liability insurance, professional indemnity insurance and many other kinds of cover for professional services including nonprofits and many more.