What is directors’ and officers’ liability insurance?
Directors’ and officers’ liability insurance, or management liability insurance, is insurance cover that offers financial protection to those who are the director, partner or officer of a company. It is designed to cover the cost of claims for compensation made against the insured individual.
Being a director, partner or officer of a company brings with it certain responsibilities – to employees, members of the public, investors and regulators. It also exposes the individuals holding the positions of director, partner or officer to personal liability for the actions or omissions they make in the performance of their company duties. This means that they can personally be the subject of claims which could lead to the payment of fines, compensation or imprisonment.
With Hiscox directors’ and officers’ cover you can be confident that you and any other insured directors, partners or officers are protected against the cost of defending or settling:
- a health and safety or manslaughter claim
- an employment claim
and claims arising from:
- a breach of duty or trust
- wrongful trading under section 214 of the Insolvency Act 1986
- the operation or administration of a pension or employee benefit scheme
How Hiscox directors’ liability insurance protects you
It covers your personal wealth, or that of any other insured directors, partners or officers, for defence costs incurred during a claim and awards made against you. For example:
- claims by investors or other shareholders (including other directors)
- defence costs and awards of claims arising from your personal involvement with the administration of any company pension
- defence costs, compensation and fines payable as a result of a health and safety claim from an injured employee.
Quote and buy today
For more information and to find an expert independent broker to quote and buy from, call us on 0808 2501 820.
We want you to understand the directors’ and officers’ liability cover we offer.
Download directors’ and officers’ liability insurance summary of cover (PDF)
Download directors’ and officers’ liability insurance policy wording (PDF)