Commonly referred to as D&O Insurance, this protects directors, officers and sometimes senior management of a company or non-profit from claims alleging a wrongful act, error or omission whilst performing their duties on behalf of the business. It typically covers:
- Wrongful Acts: Legal costs and damages for alleged or actual unintentional breaches of duty, mismanagement, negligence, or errors in decision-making.
- Legal Defence Costs: Expenses for defending claims, investigations, or lawsuits, including those from shareholders, employees, or regulators.
- Shareholder Claims: Allegations of financial loss due to mismanagement, misrepresentation, or failure to disclose material information.
- Employment Disputes: Claims from employees for wrongful dismissal, discrimination, or harassment, often overlapping with employment practices liability.
This insurance is crucial for attracting and retaining leadership, especially in industries with high regulatory or financial risks.
Subject to variations in insurers wording, exclusions and case specific endorsements.
