Business directors
Insurance Cover Guide

Scenarios where you might need directors’ & officers’ insurance

23rd April 2020

Why would I need Directors’ and Officers’ Insurance?

To give you a better idea of how directors’ and officers’ insurance can work for your business, we have provided three different scenarios where your business could be covered by a D&O insurance policy. Carry on reading to see how day to day business activities can lead to legal claims against your business, and how Directors’ and Officers’ insurance can protect key figures in your business.

Scenarios for when you might need to use your D&O insurance

Misrepresenting finances

If senior leaders in your business are negotiating a contract with a partner, and misrepresent the company’s finances, the business partner could take legal action against senior leaders.

How would D&O insurance help?

This may be classed as a wrongful act within your D&O insurance policy. This means any legal costs incurred by the partner in pursuing any action against you would need to be reimbursed by you.

Cybersecurity

The business owner knowingly fails to implement adequate cybersecurity measures and you experience a cyber-attack, which leaks customer data. Your customers take legal action against your business as a result of the security failing.

How would D&O insurance help?

Failing to implement adequate cybersecurity could be deemed to be a wrongful act by the business owners and could be classed as such on your D&O policy. D&O insurance could cover the legal costs of the legal disputes related to the cyber breach.

Staff dismissal

The business terminates a worker’s employment but fail to adhere to formal processes. The employee can take legal action against the senior leaders for unfair dismissal.

How would D&O insurance help?

This would be classed as a breach of duty in a D&O policy, which would offer cover for the resulting legal action and tribunal costs from the unfair dismissal provided the policy includes an Employment Practices Liability section.

Directors’ and officers’ insurance with Premierline

As a business owner, you can be held personally and legally liable for claims that come for your business decisions and actions, which is why you may want to consider taking out directors’ and officers’ insurance. At Premierline, our insurance professionals can help arrange director’s and officers’ insurance to meet your bespoke business insurance requirements, ensuring that key figures in your business are protected.

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Business insurance with Premierline

It is important to make sure that you have the right insurance in place to protect the business that you have built. Every business is different and has its own business insurance needs, which is why we work with some of the UK's most well-known insurers to ensure that you are getting the right insurance cover for your business.

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