Directors & Officers Insurance

A product that protects Directors & Officers, as being in such a position of power and trust is often coupled with responsibility and liability.

We are living in a litigious society with growing regulation and responsibilities. Directors and Officers insurance helps protect Directors & Officers of a business or organization.

Directors, Managers and Officers are often held accountable for neglect; defamation; breach of duty, trust or confidentiality; wrongful acts; errors and omissions for the business. This product offers financial protection against defending such claims.

At JRT, we understand the challenges of the role and how such a claim can damage the reputation of the individual. That is why we will source a cover that exactly fits your requirements.

Directors and officers liability insurance provides protection for the directors and officers of a company for claims against them for wrongful acts committed solely by reason of their acting as a director or officer company.
Wrongful acts include actual or alleged:

  • Breach of trust
  • Breach of duty
  • Neglect/error/omission
  • Libel and slander
  • Misstatement
  • Breach of warranty of authority
  • Wrongful trading

A company’s status as Ltd offers financial protection for the shareholders only. It does NOT protect the company’s directors from the consequences of their business decisions and activities, which may, under law, result in unlimited personal liability to the extent of their entire financial worth. The personal assets of a director are at risk as a result if a wrongful act, actual or alleged! You don’t have to be guilty to incur legal defence costs.

Claim scenario 1

Unfair Dismissal

A director of a medium sized company was named personally in the unfair dismissal of an employee from the company. The director was required to attend an employment tribunal and offer defence to the charge. The director had to engage their own legal counsel and fund their own defence costs from personal monies and assets. The case against the director was dismissed. The legal costs remained.

Claim scenario 2

Property – Insufficient Insurance

A fire destroyed a company’s manufacturing facilities. The sums insured in the insurance policy weren’t sufficient to allow for rebuilding. The company’s director decided to sue the director responsible for arranging the insurance after they discovered that he took no proper steps to ascertain correct values, nor did he seek any professional advice on the matter.