Directors and officers of companies of all sizes have fiduciary duties that involve  personal liabilities.

When directors are accused of breaching these duties, legal actions may be brought against them personally with devastating consequences even if they have done nothing wrong. A common misconception is that directors of limited liability companies have limited personal liabilities. But this is not the case – directors’ personal liabilities are unlimited.

D&O insurance provides a pool of money for the directors of a company that can be drawn on to fund defence and settlement costs and the cost of legal representation at investigations after allegations of a wrongful act. Most large UK companies buy D&O for their directors. The exposures are so onerous that business people operating at this level may be wary of accepting a board position without first reviewing the company’s D&O policy.

The exposures for smaller companies are no different – and in some respects are  heightened. Government bodies such as the DTI, HSE and SFO are increasing their focus on SMEs with the number of investigations of companies in this sector rising rapidly.

For more information and/or to arrange a Directors and Officers policy please contact David Wood on Tel: 01173 006 169 or email david.wood@theovalgroup.com