Liability insurance

Directors' and officers' liability

Directors and officers of companies and other organisations have various duties, responsibilities and powers in connection with their position. In most cases these are set out in a job description or terms of reference. As a result they can be held responsible for a range of issues including:

• health and safety
• data protection
• maintaining satisfactory accounts
• fraud
• negligence

If your company's directors or officers are found to have inadvertently acted outside their terms of reference and this gives rise to a claim, then any compensation and legal fees will be covered by directors' and officers' liability insurance. If the act was deliberate, then it may not be covered by the policy.

Your insurance broker will be able to provide more information about this type of policy. Find a list of registered insurance brokers on the British Insurance Brokers' Association website.

Subjects covered in this guide

• Introduction
• How liability insurance works
• Employers' liability insurance
• Public liability insurance
• Product liability insurance
• Pollution risk insurance
• Property owners' liability insurance
• Professional indemnity insurance
• Directors' and officers' liability
• Seek specialist advice

 

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