Directors & officers insurance for small businesses
Did you know that your important role as a director, partner or managing director in your small business comes with some additional responsibilities.
A directors & officers policy covers your legal liability as a director or officer of the company if legal action is taken against you. With this type of small business insurance, you could get financial support towards legal fees if your business faces any kind of allegation about wrongdoing.
Some real examples of when you could benefit from having directors & officers insurance:
- You are personally sued by the Health and Safety Executive for alleged breaches of health and safety legislation which resulted in the accidental deaths of two employees
- An employee, dismissed from her job for gross misconduct because she had failed to pass a test, makes a claim against you for alleged sexual discrimination and sexual harassment
- Two team members are injured carrying furniture across the office. If they believe that the right health and safety measures were not in place, they could make a claim against you personally
Find out more about small business directors & officers insurance below, or click here to get a quote:
Directors & officers can protect you against the cost of compensation caused by
Allegations of financial mismanagement
Breaches of health & safety regulations
What is directors & officers insurance?
Directors and officers (D&O) insurance is a type of insurance that protects the individuals who serve as directors and officers of a company from legal defence costs if they are sued for alleged wrongful acts in their role as directors, partners, or officers.
This type of insurance is particularly relevant for small businesses in the UK as it can protect the personal assets of the directors and officers of the company.
Get directors & officers insurance for your small business from Lukango and:
- Get tailored quotes in minutes
- Get covered and all your documents the same day
- UK-based expert support, online and on the phone
Do I need directors & officers insurance cover?
Small businesses that have people with key responsibilities can be vulnerable to claims against their directors and officers. It can be costly to defend even if the claims are ultimately unsuccessful. D&O insurance can provide financial protection and peace of mind for small businesses and their decision-makers.
Frequently asked questions about Directors & Officers
- Can Lukango explain Directors & Officers insurance?
D&O insurance can cover legal fees, settlements, and judgments arising from claims against directors and officers for wrongful acts. It may also cover costs associated with regulatory investigations and defence against criminal charges.
- What factors can affect the cost of D&O insurance?
The size and nature of the business, the financial stability of the company, the industry, the number of directors and officers to be insured, and what level of coverage can all affect the cost of D&O insurance. It is good to be smart here and think about setting a higher level of indemnity if your company is a business with a lot of cash in the pot.
- Do non-profit businesses need Directors & Officers insurance?
Yes they do. Non-profit organisations in the process of doing good need insurance cover no matter the nature of the business. The directors and partners of the business will still need to stick to the rules and regulations set out for them and having cover for defence costs, settlements and protection against allegations is a handy thing to have.
Related Blog posts
- Read more
Everything you need to take your idea from notepad to online shopping cart
Want to start an online shop? Here's how to get your fledgling online retail business off the……
- Read more
The best online selling platforms - a complete guide
I have good news! Incredible news actually. It has never been easier to create an online shop to……
- Read more
Effortless Tax Filing with GoSimpleTax: A Guide for Small Business Owners
Tax season can be a challenging time for small business owners. From gathering receipts and……
