Directors and Officers Liability
Product Profile
When individuals take on the role of director or officer, they can be held personally liable for their actions in this capacity. Anyone who is director or officer of a company, charity or other institution run by a board or committee is at risk.
Directors and Officers Liability insurance provides cover specifically to breaches of duty by directors and officers in managing and directing a company's affairs.
Norwich Union has tailored their Directors and Officers Liability offering to meet the needs of its SME customers. Our products offer a comprehensive range of covers, with the flexibility to select from a wide range of options. These are:
- SME Core
- SME Extra
- Charities
- Residents Associations
- Unincorporated Entities
All of our wordings are written in “clear commercial” style and cover reflects the specific exposures facing these organisations. The SME Core policy aims to satisfy the requirements of most small private limited companies with a simple company structure, i.e., they are owned and run by a few directors.
For larger or more complex companies we also offer our SME Extra policy which provides a number of additional covers and increased inner limits should they require. All the other products have been tailored further to suit the particular needs of those sectors.
Other Covers
The cover for each of the other products (charities, residents associations and unincorporated entities) is the same as Core Cover above subject to variations below.
Core Cover
- Civil Liability arising from the wrongful act of a director or officer
- Indemnification of directors and officers
- Reimbursement to the company or organisation where it is obligated to indemnify the directors
Standard Limit:
Up to the limit of indemnity
Additional Covers
- Indemnity to spouses, heirs or legal representatives in the event of bankruptcy or insolvency
- Indemnity for certain actions brought by or on behalf of the company or other directors
- Defence costs arising from bodily injury and pollution (Inner aggregate limit £100,000)
- Costs of representation incurred whilst attending certain proceedings up to £15,000
Standard Limits:
Up to the limit of indemnity (other than specified above)
SME Extra Covers (in addition to cover stated above)
- Indemnity to a director for action brought against them in their capacity as a director of an outside company
- Automatic cover for a subsidiary company acquired or set up during the policy period
- Option to purchase extended period of cover in which to notify claims in the event of cancellation
- Wider indemnity for certain actions brought by or on behalf of the company or other directors
- Defence costs arising from bodily injury and pollution (Inner aggregate limit £250,000)
- Costs of representation incurred whilst attending certain proceedings up to £25,000
- Costs and expense relating to loss of documents up to £50,000 any one claim capped at £150,000 in the aggregate
Standard Limits:
Up to the limit of indemnity (other than specified above)
Charities
- Option to purchase extended period of cover in which to notify claims in the event of cancellation
- Wider indemnity for certain actions brought by or on behalf of the company or other directors
- Costs and expense relating to loss of documents up to £50,000 any one claim capped at £150,000 in the aggregate
Residents Associations
- Wider indemnity for certain actions brought by or on behalf of the company or other directors
- Defence costs arising from bodily injury (Inner aggregate limit £50,000)
- Pollution defence costs excluded
Unincorporated Entities
- No company reimbursement clause *
- Defence costs for disqualification proceedings not covered *
- Wider indemnity for certain actions brought by or on behalf of the company or other directors
- Defence costs arising from bodily injury (Inner aggregate limit £50,000)
- Pollution defence costs excluded
* Not required as such entities have neither a legal identity or directors
Services
- Specialist claims service - supported by an independent panel of solicitors
- Legal and tax helpline - 24-hour for confidential advice
- Counselling service - available to all employees
- Norwich Union risk helpline - risk management advice
Further details:
For more information on any of these services contact your usual underwriting contact.
If you would like to know more about how we can help or have any opportunities to explore, speak to your Norwich Union Account Manager or contact us directly.
