Directors and Officers Insurance
When you’re running a business, decisions carry weight, and sometimes, risk. Directors and Officers insurance, also known as management liability insurance, is there to support the people in charge if they’re held personally responsible for decisions made on behalf of the company. Remember as a Director you have unlimited liabilities, meaning your personal assets could be at risk.
Claims can come from regulators, shareholders, employees or even customers, and they can be complex and costly. With Directors and Officers cover, your directors, and senior people can be assured this policy gives them the means to provide and pay for legal representation to defend their position.
What Does Directors and officers Insurance Cover?
No two businesses are the same, but most Directors and Officers liability insurance (or management liability) policies include some combination of the following:
- Directors and Officers Liability - Cover for individuals in leadership roles if they’re accused of a wrongful act, such as breach of duty, negligence or misrepresentation.
- Corporate Entity Liability (optional) - Cover for the business itself, not just its directors, in case of legal action related to corporate governance or management decisions.
- Employment Practices Liability (optional) - Covers claims made by employees relating to wrongful dismissal, discrimination, harassment or other employment-related disputes.
- Employee Dishonesty (optional, with some insurers) - Protection against internal theft or fraud committed by employees. Not all insurers offer this, but we’ll help you find one that does if it’s important for your business.
Who needs it?
If you’re a company director or senior person, you could be personally named in a claim, even if your company is a limited entity. D&O Insurance is especially relevant for:
- Limited companies and LLPs
- Management companies or residents associations
- Charities or not-for-profit with trustees
Why Choose Chubb Thomas?
- Truly independent insurance broker based in Bournemouth, with no corporate ties
- Insurance quotes tailored to your needs, across Dorset and surrounding areas
- Speak directly to your dedicated contact—no call centres, no waiting
- Work with your key person from start to finish
- Insurance quotes tailored to your needs, across Dorset and surrounding areas
- Fair fees and transparent advice every step of the way
- Independent and unbiased—we’re not tied to any insurer, so you always come first
- A reputation for excellence, delivering insurance services locally since the early 1980s.
FAQs
Is directors and officers Insurance a legal requirement?
No, but it’s increasingly considered essential, especially for limited companies. It’s about protecting the people who take responsibility for running the business.
Can I include cover for HR claims?
Management liability policies can be extended to cover employment practices liability. We will talk you through what’s available and what suits your business best.
Can sole traders get D&O Insurance?
No, this cover is currently not available for sole traders.
Does it cover claims from former employees?
Yes, if you include employment practices liability. It can cover claims from former employees, such as unfair dismissal or discrimination.
Is this just for big companies?
Not at all. In fact it’s more relevant for small businesses that do not have their own HR or Legal departments. With ever changing law the Director or Directors are less likely to be knowledgeable of these.
Do I need D&O cover if my company is limited?
Yes, because there is a misconception in the UK that Directors of a limited company are personally protected by the limited company. This could not be further from the truth. At law whilst the limited company has limited liability, a Director has unlimited liabilities, meaning their personal assets including their home are vulnerable and at risk.
Can it cover trustees or committee members?
Yes, if you run a charity, club or non-profit organisation, we can help you find a policy that includes cover for trustees, board members or committee members. They face similar risks to directors of commercial businesses.
Will this cover fines or criminal penalties?
No, insurance won’t cover criminal fines, penalties or anything illegal. However, it will usually cover legal defence costs.
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We’re a truly independent Dorset broker offering real advice, not scripts. offering tailored insurance quotes across Bournemouth, Poole, Weymouth, Dorchester and beyond. Whether you need personal, property or business cover, we deliver clear advice and a personal service every step of the way.
Contact Us
Let’s make your insurance work harder for your business. Drop us a message, give us a ring, or pop into our Bournemouth office—we’re always happy to chat.
Phone: 01202 778 000
Email: email@chubbthomas.co.uk