Liability insurance for your business

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

Directors' and officers' liability insurance (D&O) enables the directors and officers of a company, or the company itself, to cover themselves against such damages.

If a director or officer is found to have accidentally acted outside their terms of reference and this results in a claim, compensation and legal fees will be covered by the D&O policy. If the act was deliberate, then it may not be covered.

Your insurance broker will provide more information on this type of policy - see specialist insurance advice for your business.