Directors’ and Officers’ (D&O) claims have increased four-fold in the past 10 years* yet less than half of SMEs in the UK have D&O insurance cover.

Directors’ and Officers’ of businesses can be held personally liable via civil, criminal or regulatory proceedings should they fall short of the obligations their position demands. Personal assets such as cash, property and pensions could all be at risk to meet the costs and fines. 

In recent years, there has been a trend towards personal accountability, with regulators turning their gaze towards company individuals, however, many SME directors remain unaware of the extent of their liabilities. 

Although the majority of claims at this level are not for huge amounts, a company director or officer of an SME could easily end up having to spend tens of thousands of pounds in defence even if completely innocent of the offence.

If someone wants to take an action against you, even where you haven’t done anything wrong, D&O insurance can cover your defence costs and damages if the case doesn’t go your way.

For smaller firms, who typically have fewer resources to defend allegations or fund potential fines, penalties or awards for damages, D&O insurance is becoming increasingly important.

This is where we can help – by discussing and understanding our clients’ business activities we can recommend the most appropriate cover which will often include D&O insurance to avoid crippling legal costs if a director or officer faces charges against them in their official capacity.

*According to Zurich Insurance 

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