What is Directors and Officers Insurance?

For more information visit our website:

As part of our liability insurance video series this video looks at directors and officers insurance.
Learn about which businesses need this insurance and how it protects your staff members and ultimately your business.

Video transcript:

Hi, my name is Ben Leech, and I'm an advisor for Towergate.
In this video I’m going to talk about Directors and officers insurance
D&O insurance is a liability cover that protects your business against compensation claims brought about through an act of one of your directors or managers.
It’s important because these actions may not be covered by your other liability insurances. For example if a board member is knowingly negligent or acts illegally the claim could be against them personally, not the company. This can leave them personally responsible for payments and could stop them operating in their job.
The type of things Directors and Officers insurance covers are:
• Errors in judgment
• Negligence
• Criminal activity
• Breach of trust or duty

Claims can come from a range of people and organisations including customers and employees, shareholders, investors and governing bodies. This means that if your business has directors or managers who take on personal liability for their actions under your employment, you should consider D&O insurance.

Even if your directors have performed their duties in good faith and to the best of their abilities, a simple allegation can still incur large costs for their legal defence. Directors and officers insurance can indemnify personal losses of your employee in criminal and regulatory investigations.