Directors and Officers Insurance

Protecting your directors and officers when mistakes are made

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 opposite or call us on:

020 7543 2807

Claims Scenarios

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Negligence

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