Directors & Officers (D&O) Insurance protects your higher management against claims made against them due to negligent or wrongful acts.
Everybody makes mistakes, however not ever mistake is equal, and senior staff members are often held responsible if they fail with in their duties.
The duties of directors and officers are often governed under strict regulations, policies and laws. Even the smallest of their decisions can start a domino effect of repercussions.
Wrongful acts can include areas such as neglect, breach of duty/trust, misleading statements, wrongful trading and more. This cover can safeguard your senior staff against claims made by regulators, shareholders, investors or creditors in lieu of such an error.
If a claim is made against a director or officer, the company itself is rarely held accountable. Instead, the directors or officers themselves will suffer the financial and personal repercussions.
Without cover in place, your directors or officers could face dismissal, disqualification from working in the same role elsewhere, civil proceedings and even criminal prosecution which could lead to major fines and even imprisonment.