This type of insurance policy will provide financial protection against any claim made against you personally as a Director of a company. This will also apply any officer or partner of a company. A Directors and Officers Insurance Policy will cover you for the costs to defend or even settling legal or alleged criminal actions.
What limits do Directors and Officers Insurance provide cover up to?
Cover can start from £50,000 and continue up to millions. It does depend on your vocation and what you may think your potential liability could be. Everyone is different and the potential risks one faces will be very different to the next person. Property Insurance Centre will tailor a Directors and Officers Insurance policy that will work to your needs and what your particular role is.
What can a Directors and Officers Insurance policy cover you for?
- Director’s and/or Trustee Liability – Any notifiable claim against the Director or Trustee.
- Reimbursement – Any sums that you have paid or are held liable to pay the Director or Trustee by way of an advancement or reimbursement in relation to the Director’s or Trustee’s liability.
- Shareholder Derivative Costs – Payment on your behalf the Shareholders Derivative Costs.
- Identity Theft – Defence costs incurred by a Director/Trustee in connection with Identity Theft Claims.
- Automatic Acquisition Cover – If an entity is acquired then that entity will be treated as a subsidiary.
- Corporate Manslaughter – Cover for death of another person under the Corporate Manslaughter and Homicide Act 2007.
- Emergency Costs – Retrospective approval for such costs for the aggregate amount you are insured for.
- Regulatory Crisis Costs – Any fees, costs or expenses of any consultant chose by a Director or Trustee, incurred whilst responding to (a) A Raid or on-site visit, (b) A public Announcement, (c) formal notice legally compelling the Director to answer questions or attend interviews with an Official Entity.
- Retirement Run-off – Wrongful Acts committed before the policy expired.
Who takes out a Directors and Officers Insurance Policy?
People from all walks of life and every industry take out these policies. Property Insurance Centre are heavily invested in property insurance and many of our Block of Flats Insurance Policy Holders opt to include a D&O Policy. Many blocks of flats insurance policies are set up in the name of limited companies, and sometimes the leaseholders or persons involved in running the blocks are directors. Estate Agents, Property Managers & Private Road Owners are just a small handful of some of the Directors and Officers Insurance policy holders we cover.
What should I expect to pay for a Directors and Officers Insurance Policy?
Policy pricing, like anything will depend on what limits you set on the policy and what the industry is. Some industries are potentially more at risk from claims than the next. You should expect pricing to start from circa £80 for the lowest level of cover from the least risky trades or ‘companies’.
If you need any further information or are thinking of adding a D&O policy to your portfolio, then contact one of our Qualified Advisors on 0800 085 3761.