Whilst responsible companies correctly insure assets such as buildings and stock, directors liability is often overlooked. A white paper entitled ‘Tough at the Top – Protecting your Key People’ from Allianz Insurance PLC has highlighted the extent of the problem:

54% of business leaders did not realise directors can be personally and legally liable for a business decision.

Only 34% of SME business leaders understand the protection that can be provided by Directors and Officers liability cover (D&O).

Whilst Employers’ Liability (EL) is a legal requirement and many other organisations take out public liability insurance, neither fully protect Director interests.

In January, the BBC reported on how a company’s Technical Director was prosecuted and found guilty after an employee death. In addition, two Directors were prosecuted after a trainee was killed in a fall in Westminster.

Both cases illustrate the vulnerability of Directors when things go wrong. More worryingly, it is the company’s responsibility to pay for Director defence costs and if insufficient funds are available, the Director can become personally liable.

Many executives in the UK are leaving themselves dangerously exposed because of this which can be alleviated with a D&O liability insurance policy.

D&O liability insurance covers legal costs incurred by Directors, shareholders, officers and non-executive directors when actions are brought against them. It can also cover any resulting settlements, damages and awards.


If you are a Company Director and are worried about personal liability, help is at hand. We are able to provide advice and help to ensure that you’re fully protected.  We will listen to your requirements and then approach a number of reputable insurers on your behalf to ensure that we can obtain the most appropriate D&O liability insurance available to meet your requirements and budget,