Directors and Officers Insurance

Under this area of a D&O insurance policy, the coverage will typically provide protection for payments and/or defence costs resulting from Management Error Claims, Employment Practice Errors, and Outside Entity Director Claims.

Coverage under the D&O liability section of these insurance policies will normally include protection against:

• Claims against an insured director or officer
• Company reimbursement cover
• Compensation for court attendance
• Crisis public relation costs
• Investigation costs
• Management buy-outs
• Manslaughter claims
• Tax

Under this coverage, company directors and officers (or responsible persons) are protected against any actual or alleged act, error, omission, or defamation by other company directors or outside entity as long as the individual who is the target of the claim is acting in their official employment capacity.

The second type of protection provided by a D&O insurance plan comes in relation to Employment Practices Liability.

Under this type of cover, Directors and Officers are insured against an act or omission which violates a natural person’s employment rights relating to their actual or possible employment by the company or by an outside entity.

Coverage in this instance is provide for:

• Claims by employees
• Claims by other alleging Employment Practices Liability
• Compensation for Court Attendance
• Investigation costs
• Management Buy-Outs

As such, including D&O insurance which offers Employment Practices Liability is an efficient way to protect senior company officers against any actual or perceived liability claims in relation to employment concerns for the business’ staff.