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Directors & Officers Insurance

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In the UK, Directors and Officers (D&O) insurance protects the personal assets of company directors and senior managers from financial losses if they are sued for alleged wrongful acts. It covers legal defence costs and damages awarded in such claims, acting as a safety net for individual directors and officers. 
 
Key aspects of D&O insurance in the UK:
  • Protection of personal assets:
    D&O insurance safeguards directors and officers’ personal assets from claims related to their actions as leaders of a business. 
     
  • Coverage for legal costs:
    It covers the legal expenses incurred in defending against claims, including legal fees, court costs, and expenses related to investigations. 
     
  • Coverage for damages:
    D&O insurance can cover the payment of damages awarded in successful claims, limiting personal financial loss. 
     
  • Focus on wrongful acts:
    The insurance typically covers allegations of breach of duty, negligence, misrepresentation, or other wrongful acts committed by directors or officers. 
     
  • Protection for various claims:
    D&O insurance can cover claims from shareholders, customers, creditors, employees, regulatory bodies, or even competitors. 
     
  • Not for fraudulent or criminal actions:
    It’s important to note that D&O insurance policies generally do not cover deliberate fraud or criminal acts. 
     
  • Optional cover:
    D&O insurance is typically an optional insurance policy, and businesses decide whether or not to purchase it based on their risk appetite. 
     
  • Part of management liability insurance:
    D&O insurance is often part of a broader management liability insurance package that protects senior management from various risks. 
     
  • Growing importance:
    In today’s world of increased compliance and legal scrutiny, D&O insurance has become an increasingly important protection for UK businesses