10 Reasons for Directors & Officers Insurance


SMEs are not exempt from D&O claims, they face exactly the same risks and regulations as their larger peers, but often do not benefit from in-house HR or legal teams.
If a director has been accused of breaching their duties, they are personally liable to defend the claim. Their personal assets are potentially at risk if they do not have adequate D&O cover.
Investigations and fines imposed by a regulator or body such as the Health & Safety Executive are one of the primary drivers of claims in the current UK business climate.
Legal costs for defending allegations against the company or one of its directors can often run into tens of thousands of pounds.
If investors lose value in their shares as a result of a director or company’s alleged misconduct they could seek compensation via the courts.
If faced with bankruptcy or insolvency, creditors may pursue legal action against directors if they feel that they have not acted in their best interests.
A common misconception is that alleged misconduct by directors or companies is covered under other liability policies such as Professional Indemnity.
A D&O policy can cost from under £500 per year, yet the total cost of a D&O claim can run into hundreds of thousands, if not millions of pounds. 
Not having D&O insurance in place may put off talented individuals from joining a company as they will not be protected.
In an increasingly litigious society employment practice claims such as sexual harassment or wrongful dismissal can result in astounding settlements.
Are your decision-makers protected with D&O Insurance?  For more information or a non obligation quote why not give CCS Insurance Services Ltd a call on 01483 726777.  We'd love to help.