Directors and Officers Insurance

Protecting your directors and officers when mistakes are made

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Directors and Officers (D&O) insurance offers financial protection to those who act in the capacity of a director, officer or decision-maker of a company.

Public and Products Liability policies do not cover D&O legal actions. Settling these legal actions, even if the director or officer is found innocent, can be costly and may bankrupt a company or individual. Many companies choose to purchase D&O insurance to protect their executives from legal expenses and personal liability exposures.

In a culture where more claims are being brought against not only firms but also individuals within a business, it is important this insurance is in place.

If you already purchase D&O, it is important to frequently assess your policy terms to ensure your limits of indemnity are sufficient to cover any legal actions made against your directors and officers.

Speak to Aston Lark today for a full review of your policy to ensure you are adequately covered and don’t have any hidden exclusions in your policy. You can count on our professional insurance advisors for the resources and specialist knowledge you need to purchase a new D&O policy or update your existing policy.

If you would like to get in touch, please complete the enquiry form below or call us on:

020 8633 8430

What is Directors and Officers insurance?

Directors and Officers (D&O) insurance is a type of liability coverage designed to protect individuals who serve as directors or officers of an organisation.

This insurance helps cover costs associated with legal fees and damages related to claims made against these leaders for alleged wrongful acts or omissions in their capacity as members of the organisation’s leadership team. D&O policies typically provide protection from allegations such as breaches of fiduciary duty, negligence, mismanagement, and other wrongful actions taken by directors while carrying out their duties.

Companies typically purchase D&O insurance to protect their directors and officers from personal liability, as the company itself may not always be able to indemnify them. It’s important to understand that each policy has its own exclusions and limitations, so coverage can vary depending on the insurer and specific terms of the policy.

What’s covered by Directors and Officers insurance

D&O insurance policies are designed to protect directors and officers of a company or organisation from claims made against them for wrongful acts or omissions committed in their capacity as leaders. Typically, these policies provide coverage that includes legal defence costs, judgements, settlements, and other related expenses. Additionally, D&O insurance can help cover the cost of investigations into alleged wrongdoing by the board or management team.

  • Indemnification: Provides reimbursement for the legal costs and expenses incurred by the directors and officers defending themselves against covered claims.
  • Damages and settlements: Covers the cost of damages, settlements, and judgements that may be awarded against the directors and officers in covered claims.
  • Defence costs: Covers the legal fees and expenses incurred by the directors and officers in defending themselves against covered claims.
  • Employment practices liability: Provides coverage for claims related to employment practices, such as wrongful termination, discrimination, and harassment.
  • Regulatory investigations: Covers the cost of defending against investigations or proceedings brought by regulators.

Why Choose Aston Lark for Directors and Officers insurance

Aston Lark has many years of expertise in D&O insurance and can help businesses identify and assess risks, tailoring coverage to meet their specific needs. With access to a wider range of insurance markets and products than other, smaller providers, this results in more competitive pricing and better coverage options.

With a dedicated claims handling team providing support and guidance in the event of a claim, you’re sure to find confidence in our level of service and professionalism.

Speak to Aston Lark today for a full review of your policy to ensure you’re adequately covered and don’t have any hidden exclusions in your policy. You can count on our professional insurance advisors for the resources and specialist knowledge you need to purchase a new D&O policy or update your existing policy.

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Claims Scenarios


Your organisation’s senior leaders negotiate a contract with a business partner. However, your senior leaders misrepresent the company’s finances in order to secure the contract. When the business partner discovers this discrepancy, they take legal action against your senior leadership team.

This would qualify as a wrongful act on your D&O policy, resulting in reimbursement for any legal costs that arise from the incident.

Data breach

Your company stores sensitive customer information on site, but your senior leaders fail to enforce adequate cyber-security measures to protect this data. Consequently, a cyber-attack takes place, publicly exposing customers’ personal data. Numerous customers take legal action against your senior leaders for the damages that result from this security failing.

This would qualify as negligence on your D&O policy, providing cover for the cost of customers’ legal disputes related to the breach.

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Breach of health and safety

An employee was injured at work and brought an Employer’s Liability claim against the company. The solicitor also included the director responsible for health and safety.

Your D&O policy would defend the officer and the costs involved in complying with the investigation by the Health and Safety Executive (HSE).

Additional Resources

Directors and Officers Liability Insurance Guide 2020
The Benefits of Directors and Officers Liability Insurance


What does Directors and Officers (D&O) insurance cover?

Directors and Officers (D&O) insurance is a specialised liability insurance that safeguards the personal assets of company directors and officers. It provides financial protection against legal claims brought by shareholders, employees, regulators, and creditors. D&O insurance covers the costs of legal defence and financial losses resulting from alleged wrongful acts or breaches of duty committed during their responsibilities.

Who is covered by D&O insurance?

D&O insurance primarily covers directors and officers serving in a company. This includes executive officers, board members, and other individuals in management positions who make decisions on behalf of the company. In some cases, coverage can extend to the company itself when it indemnifies its directors and officers for certain types of claims.

What risks does D&O insurance protect against?

D&O insurance protects against various risks and potential claims related to company management and governance. This includes claims related to errors or omissions, misleading statements, negligence, breaches of fiduciary duty, employment practices, regulatory violations, shareholder actions, and other forms of corporate mismanagement.

Why is D&O insurance important?

D&O insurance is crucial for multiple reasons. Firstly, it provides essential financial protection to directors and officers, shielding their personal assets from liability. It covers not only financial losses but also the significant costs of legal defence, even if the claims are unfounded. Secondly, D&O insurance helps attract and retain qualified individuals for these roles by reducing personal financial risk. Lastly, it instils confidence in stakeholders, including shareholders and employees, by demonstrating the company’s ability to effectively handle legal challenges.

How does D&O insurance benefit businesses?

D&O insurance offers several key benefits to businesses. It protects the personal assets of directors and officers, allowing them to focus on leading the company without undue financial risk. Furthermore, it safeguards the company’s reputation by providing the necessary financial resources for a strong legal defence and potential settlements, which helps maintain stakeholder confidence. D&O insurance also promotes good corporate governance practices and compliance with legal and regulatory requirements by giving directors and officers a safety net that encourages responsible decision-making.

What does a typical D&O insurance policy cover?

A typical D&O insurance policy covers legal defence costs, settlements, and judgments arising from covered claims against directors and officers. It may also include coverage for investigation costs and legal representation. Additionally, policies often have indemnification provisions, reimbursing the company or directors and officers for payments made to settle claims. Some D&O policies offer optional enhancements or extensions that cover additional types of claims, such as entity claims (directly against the company), and additional liability exposures faced by directors and officers.

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