Liability insurance

Directors' and officers' liability

Directors and officers of businesses have various duties, responsibilities and powers in connection with their position. In most cases these are set out in a job description or terms of reference. As a result they can be held responsible for a range of issues including:

• health and safety
• data protection
• maintaining satisfactory accounts
• fraud
• negligence

If your business' directors or officers are found to have inadvertently acted outside their terms of reference and this gives rise to a claim, then compensation and legal fees will be covered by directors' and officers' liability insurance. If the act was deliberate, then it may not be covered by the policy.

Your insurance broker will be able to provide more information about this type of policy. Find a list of registered insurance brokers on the British Insurance Brokers' Association (BIBA) website - Opens in a new window. If you choose to deal directly with an insurer, it's worthwhile checking that they are a member of the Association of British Insurers (ABI). Check that an insurer is a member of the ABI at the ABI website - Opens in a new window.

Subjects covered in this guide

• Introduction
• How liability insurance works
• Employers' liability insurance
• Public liability insurance
• Product liability insurance
• Insurance against pollution damages
• Property owners' liability insurance
• Professional indemnity insurance
• Directors' and officers' liability
• Seek specialist advice
• Here's how I checked what insurance I need

Print options - What are my print options - Opens in a new window

• Add guide to my print portfolio (print later as PDF)

Email options - What are my email options - Opens in a new window

• Tell a friend about this page
• Send me an email alert when this guide changes