Directors & Officers Liability Insurance


Directors & Officers responsibilities and potential liabilities are becoming increasingly onerous and if you are sued in your capacity as a Director you may not be able to seek financial assistance from the company whether in a public or private company.There are approximately 250 different pieces of legislation from health and safety to competition law and so forth where Directors and/or Officers can be held personally liable, open to criminal prosecution or sometimes both.Therefore Directors & Officers liability insurance should be considered to provide important protection to the Directors & Officers who may become targets due to wrongful acts committed in their capacity as Directors and Officers of the company. Wrongful acts usually means any actual or alleged breach of duty, breach of trust, neglect, error, misstatement, misleading statement, omission or other act committed or wrongfully attempted by any Director or Officer.

Claims can arise from various sources such as:

  • Regulatory Authorities for breaches of legislation
  • Employees for alleging harassment, unfair dismissal and discrimination
  • Customers due to contractual disputes
  • Creditors as a result of insolvencies

Our Methods

This insurance provides a legal expenses “war chest” for Directors and/or Officers to enable them defend their good reputations in such circumstances and also help to protect their personal assets in the event of being sued while carrying out their normal duties. Even in circumstances where the Director is ultimately not held liable significant legal expenses can be personally incurred. This insurance provides protection for this. Policy Terms & Conditions vary between different insurers full details of which will be provided at quotation stage. Please contact Mercantile Insurance if you are concerned about your potential exposure.