Directors & Officers Liability Insurance

What is directors and officers liability insurance?

Directors and officers liability is an insurance policy that will protect your key officers, managers and directors, and cover the compensation costs of any claims made against them. It can cover a number of different circumstances, including:

  • Employment claims
  • Breach of trust
  • Breach of duty
  • Error
  • Wrongful trading
  • Misleading statements or defamation
  • Health and safety claims

This form of insurance only covers claims that are made against individual directors, rather than your business as a whole.

Why do I need directors and officers liability insurance?

Directors, officers and key managers will naturally have certain responsibilities and duties as part of their role. If they are found to have breached these in any way, it could result in a case being brought against them. In some cases, the resulting costs can mount up in the form of court fees and any compensation that arises if the defence is unsuccessful.

As a minimum, dot2dot’s basic cover includes a limit of £25,000. However, depending on the size of your business, there are a number of reasons for upping this figure. These include:

  • The possible need for separate legal representation for individual members of staff
  • The tendency of legal bills in a situation like this to mount up
  • Insurers are reporting an increasing number of these claims

If you have any specific questions surrounding directors and officers liability insurance for nurseries, please don’t hesitate to get in touch with a member of our expert team today.