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Directors & Officers Insurance

Directors and officers of companies of all sizes have certain personal liabilities with the fiduciary duties of their position. When directors are accused of breaching these duties, actions may be brought against them personally with devastating consequences even if they have done nothing wrong. A common misconception is that directors of limited liability companies have limited personal liabilities. But this is not the case – directors’ personal liabilities are unlimited.

D & O insurance provides a pool of money for the directors of a company that can be drawn on to fund defence and settlements costs and the cost of legal representation at investigations.

Most large UK companies buy D & O for their directors. The exposures are so onerous that business people operating at this level may be wary of accepting a board position without first reviewing the company’s D & O policy.

The exposures for smaller companies are the same as they are for large ones – and in some respects are actually higher. Government bodies such as the DTI, HSE and SFO are increasing their focus on Small to Medium Enterprises and the number of investigations of companies in this sector is rising rapidly.