Directors & Officers

Directors & Officers Insurance FAQs

Are Legal Defense costs covered?

Though many of the cases brought against boards are eventually thrown out, there can still exist a significant legal expense burden in defending which D&O insurance can provide for. D&O Insurance can act as a legal defense policy where legal services are employed in relation to a claim.

Why do I need D&O Insurance?

As a Director / Officer of a Management Company YOU have unlimited personal liability and you may be personally listed as a defendant in legal action by a third party and you may be accountable for both your own actions and the actions of your fellow directors & officers.

How does the policy’s limit of liability apply?

Usually there is a single aggregate limit of liability applicable for all claims which fall within the terms of the policy. The aggregate limit is the entire amount that the insurer is willing to pay under the policy, regardless of the number of claims, the number of insured individuals or entities or accumulated defense costs. Cover for any current or future claim ceases once this limit has been met and your insurer has no further obligation with respect to outstanding claims or future defense costs that may be incurred.

What is typically excluded under a D&O policy?

Standard exclusions include fraud, personal profiting, account of profits and other illegal compensation exclusions, pending and prior litigation, bodily harm or property damage and pollution.

Why Should Our Firm Consider D&O Cover?

If you are considering Directors & Officers Cover for your firm, consider these facts:

  • Employment practice claims remain a large threat to directors In an increasingly litigious society employment practice claims such as sexual harassment or wrongful dismissal can result in astounding settlements. 
  • 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.
  • Legal costs for defending allegations against the company or one of its directors can often run into tens of thousands of Euro.
  • Investigations from Health & Safety Authorities are more common and a key driver of D&O Claims.
  • 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.

Call our broker team today for advice and a quick quotation, and we will take it from there.

Can I get D&O Cover as an Individual?

Yes. Many Directors hold multiple directorships and not all the entitites have a D&O policy in place. We recomend that directors who may hold a few roles place their own D&O policy for them as an individual, for their own piece of mind. Then they know if perhaps one of the entities they work with lapses their cover, they still have the backing of their own cover.  

What is Side A & Side B Cover in D&O?

Side A is covering a Directors Personal Liability where the company itself is not able or permitted to indemnify the director. Usually for Side A Cover there is no excess. 

Side B indemnities the company for the costs of defence where they can defend the director. Side B Usually has a policy excess.

What are the standard exclusions in Directors & Officers Cover?

  • Severability Clause
  • Major Shareholder exclusion (excludes claims made by large shareholders )
  • Pollution Exclusion
  • Conduct
  • Intellectual Property Exclusion
  • Outside Directorships fines and penalties
  • Circumstances Advised Exclusion
  • Dishonest Acts
  • Bodily Injury & Property Damage
  • Professional Services exclusion
  • North American Claims exclusion
  • Prospectus liability exclusion

Want to know more?
Talk to an expert

Contact Us