What is directors’ and officers’ insurance, and do I need it?

Therefore, it could be a good idea to protect yourself with directors’ and officers’ insurance which can help with the costs of defending against claims and the losses suffered because of them.

Directors’ and officers’ insurance can help mitigate threats to your personal finances by providing you with the reassurance that legal defence costs and compensation demands can be met if there is a mistake on your watch.

Some examples of how directors’ and officers’ insurance could help

• Competitor defamation: Being accused of wrongful acts can be especially damaging to someone in a position of responsibility. This might include breaches of trust or duty of care, negligence and defamation. When you launch a new product, a competitor may believe you’ve made an incorrect statement about them within your press release and a defamation claim could land with you. Directors’ and officers’ insurance can help support with defence and settlement costs.
• Employee injury: No matter the industry sector your business operates within – from technology and finance to construction – workplace accidents are a possibility. Employee health, safety and wellbeing is always on the agenda, but an accident at work could lead to an injury for your personnel. If the Health and Safety at Work Act 1974 is breached, a director or officer could face personal charges for failing to uphold it.

Why choose directors’ and officers’ insurance from Hiscox?

• IoD members benefit from a 12.5% discount* on directors’ and officers’ insurance from Hiscox, on standard rates for the lifetime of your policy.
• Tailored to you, Hiscox help to ensure that your directors’ and officers’ insurance is specific to your circumstances, your business and the sector you operate within.
• For two consecutive years, Hiscox has won the Feefo Platinum Service award. As an award-winning insurer, you know you’re in safe hands.
• With cover flexibility from Hiscox, you only pay for the directors’ and officers’ cover you need. In addition, it’s possible to adapt your policy and pay monthly without incurring an admin fee.

Hiscox wants to help your small business thrive. Their blog articles will contain lots of useful information relevant to your growing business. But these articles do not constitute professional advice and must not be construed nor relied upon as such. To find out more on a subject we cover here, please seek professional assistance, specific to your circumstances.

*Any discount is only applicable to policies introduced via the Institute of Directors, whether existing or new, but could not be applied to policies that are being managed by an alternative third party such as an insurance broker.

Discount available for the lifetime of your policy applies on renewals while the Institute of Directors remains an Introducer Appointed Representative of Hiscox Underwriting Ltd.

Terms and conditions apply. For full terms and conditions see hiscox.co.uk/IoD/business-insurance.

The Institute of Directors is an Introducer Appointed Representative of Hiscox Underwriting Ltd. who is authorised and regulated by the Financial Conduct Authority. For UK businesses only.