Professional Indemnity, Directors and Officers Liability
Professional Indemnity Insurance is a type of liability insurance that provides cover for the financial consequences of neglect, error or omission by the professional or firm taking out the policy. If a third party makes a claim against any wrong-doing, mistake or breach of professional duty on your part, then this type of insurance will protect the assets and reputation of your business.
Professional indemnity insurance is designed to cover not just your business, but also employees or a related entity acting within the scope of their professional duties.
Protecting yourself against any claim could prove to be expensive and time consuming not to mention the damage caused to your reputation and business. If things do not work in your favour, you could be held accountable for not just your actions but also for those employees under your supervision. A professional indemnity policy can protect both you and the business through the cover from such claims, including the costs for defending such claims. You will have cover for the legal expenses and compensation associated with a claim, should you be found responsible for any damages. This kind of insurance will give you the much-needed peace of mind and confidence to conduct your business.
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The directors and officers in your company are in a position of responsibility. Managers, directors and supervisors can face allegations and claims for which they may be personally liable. Even in a company with limited liability status, personal liability is unlimited. Directors and officers are under increasing scrutiny, and it is commonplace for allegations of wrongful acts to be made.
Directors and officers (D&O) insurance policies offer liability cover for company managers to protect them from claims which may arise from the decisions and actions taken within the scope of their regular duties.
Key personnel are likely to have more and higher-risk responsibilities and compensation claims could be made against them by staff, customers, investors, or regulators.
Any allegations of wrongdoing need to be investigated and defended, and this can cost a significant amount even if the case doesn’t reach court. This means directors’ and officers’ personal finances are at risk, so it is essential companies provide protection through directors and officers (D&O) liability insurance.
D&O insurance can also cover legal costs from defending a case.