A Director or an Officer (especially of small and medium businesses) will have a large responsibility when it comes to running the business properly and looking after the staff. Shareholders may have certain expectations and generally rely on them to do the right thing at all times.
What if these Directors and Officers make a mistake or some things go wrong (which is out of their control!)? Claims can be made against Individual Directors or Officers by employees, Government, Shareholders and Clients. If the company doesn’t have the right cover for its Directors, they could potentially lose everything (not only the business but also personal and family assets).
Directors and Officers Liability Insurance is the policy which will secure from such adverse situations. Also known as D&O policy or Management Liability policy, this policy offers cover that is intended to protect individuals from personal losses if they are sued as a result of serving as a director or an officer of a business or other type of organization.
D&O policy gives peace of mind and confidence to the Directors to grow the business, knowing that their personal assets are protected against legal liabilities brought against them personally through managing a particular business.

Some of the coverages in D&O policy are:

a) Directors and Officers Liabilities – protects directors and officers for claims of wrongful acts (e.g. fraud),

b) Employment Practices Liabilities – covers the company, directors, officers and employees for claims made by employees (e.g. bullying, unfair dismissal),

c) Statutory Liabilities – covers individuals and the company for fines from operating the business (e.g. fines insurable by law)

d) Representation costs of attending an inquiry or investigation regarding company affairs,

e) Defence costs.

Who needs to buy?

1. Directors of privately owned company or any business.

2. Key Officers of the company.