Directors and officers insurance

In today’s business climate owners and directors face a myriad of employment-related exposures. Directors and officers insurance (D&O) has become an essential purchase for many business owners.

Claims can come from, employees, regulators, creditors or customers. Ever-changing regulations, increased employee awareness of employment rights means directors are more frequently at risk, translating to rising claims and escalating settlement costs.

Small companies are not exempt from litigation arising out of the management decisions. They, too, are at risk. Regardless of company size, the legal cost to defend a director is substantial. D&O insurance is an important element of cover that should be considered.

D&O Insurance Fills the Cover Gap

Unlike liability policies that provide cover for claims arising from property damage and bodily injury, directors and officers insurance specifically provides cover for ‘wrongful acts’, such as an actual or alleged error, omission, misleading statement, neglect or breach of duty.

For example, a manufacturer told one of its suppliers to increase inventory because they were expecting a large increase in production. As predicted, demand for the manufacturer’s product grew but the manufacturer increased its inventory with another supplier instead. The original supplier successfully sued the manufacturer, alleging they suffered damages as a result of having relied on the manufacturer’s promise. With the right directors and officers insurance they would have had cover to defend them.

Here to help

Whether you are a charity or privately held company it is likely that your business can benefit from a D&O policy. Since there is no such thing as a ‘standard’ policy, we can assist so you purchase the right cover, at the right price. We take the time to understand your business and can knowledgeably help design a policy to meet your needs.

Contact Us today to learn more about D&O insurance and the appropriate protection for your company against potential directors’ and officers’ liability. For more information on directors and officers insurance please – Click Here. Edison Ives are proud members of the British Insurance Brokers Association.