Protect Your Business with Directors and Officers Liability Insurance

Ask yourself this. What would happen if an incident were to occur tomorrow where one of your directors, partners or officers was held responsible for some non-compliant wording on your website, or if they were misquoted in the local newspaper and accused of defamation? How would you cover the cost of any fines, compensation or imprisonment?

That’s where Directors and Officers Liability Insurance (sometimes known as Management Liability Insurance) comes in. This type of insurance is designed to cover the cost of claims for compensation made against the individual that is insured.


Claims brought against individual directors, officers or partners can threaten both the personal wealth of the individual and the financial viability of the company in question.

If you are a director, partner or officer of a company brings with it certain responsibilities – to employees, members of the public, investors and regulators. As an individual director, partner or officer, you may also be exposed to personal liability for the actions or omissions you make in the performance of your day-to-day company duties. Unfortunately, this means that you could be personally prosecuted as the subject of claims which could lead to the payment of fines, compensation or imprisonment.

Companies are only obliged to indemnify their directors for wrongful acts in some, not all, circumstances. Many companies’ articles of association specify that the directors and officers will only be indemnified in certain situations. This doesn’t necessarily provide the individual or the business with complete protection, perhaps because:

it has insufficient funds. Many claims made against directors are from investors and creditors and arise when the company is insolvent
it may not be permitted by its articles of association to do so in certain situations
it may be prevented from doing so in certain situations by the provisions of the Companies Acts


By choosing to take Directors and Officers Liability cover with a member of The County Group, you can relax in the knowledge that you and any other insured directors, partners or officers are protected against the cost of defending or settling:

      • A health and safety claim
      • A manslaughter claim
      • An employment claim

        It also includes any claims arising from:

      • A breach of duty or trust
      • Negligence
      • Defamation
      • Wrongful trading under section 214 of the Insolvency Act 1986
      • The operation or administration of a pension or employee benefit scheme


No – there is quite a big difference in the two type of cover. Key Man Cover (also known as Key Person Protection) protects you and your assets in the event of a nominated ‘key’ member of staff in your business having a critical or terminal illness, or dying. It is a type of cover designed for a business to insure itself against the financial loss it would suffer if this unfortunate circumstance should occur. The nominated ‘key person’ could be a Director, Officer or Partner, but key man cover would not protect you against any of the actions listed above. We offer both Key Person Cover and Directors and Officers Liability Insurance, and would be happy to go through what the best cover options are for you and your business.