What Does Directors And Officers Liability Insurance Cover?

Directors And Officers Liability

Finding the right D&O insurance is vital for remaining protected from compensation claims and other losses. Learn what’s covered in a policy from our experts.

What Is Directors And Officers Liability Insurance?

D&O insurance – the shortened name for Directors and Officers liability insurance – can often be a complex topic. After all, it’s not always clear what it is and who it’s intended for.

Put simply, a D&O policy is a type of insurance designed to protect directors and officers of management companies or businesses. At Flats Direct, we specialise in D&O insurance for directors and officers of blocks of flats. This means our policies can apply to directors of Residents Associations too, even if they’re unpaid volunteers.

Being a director for a block of flats comes with many responsibilities, from maintenance issues to choosing who to bank with. This puts the directors and officers at risk. If anyone is unhappy with your decisions, or they incur a financial loss, they could make a legal claim against you.

Having the right D&O policy will protect you should this ever happen.

What’s Covered By Directors And Officers Liability Insurance?

As the director or officer of a block of flats, there are a number of ways your decision-making could lead to a claim. As such, it’s important to understand what’s included with D&O insurance.

A D&O policy from Flats Direct can include cover for:

  • liability for compensation awarded against you in your role as a director or officer
  • the costs of defending claims made against you where there is a defence your insurers can use
  • the costs of defending employment-related claims
  • the costs incurred in representing you in Court
  • reasonable costs for attending an investigation you are legally obligated to attend

Here are some examples of situations where D&O insurance from Flats Direct could provide protection:

  • HMRC investigations into tax payments
  • health and safety investigations by the Health and Safety Executive
  • investigations by the police or Serious Fraud Office
  • defamation claims from residents, investors and shareholders
  • claims brought in relation to European legislation and insolvency
  • claims brought in relation to reporting errors or inaccurate disclosure of information
  • claims brought in relation to employment practices and HR issues

Finding Specialist Directors And Officers Liability Cover

With the wide range of risks facing directors and officers, it’s vital to ensure the D&O policy you’re taking out covers your requirements.

As a specialist building insurance broker, Flats Direct can negotiate suitable D&O insurance for your needs. Policies are inexpensive and offer peace of mind knowing you’re covered should the worst happen and a claim be made against you.

If you’re unsure what level of risk you might face, we’ve put together a Directors and Officers Liability Insurance calculator. Fill in the ‘yes or no’ questions to generate a score and understand whether you need D&O insurance.

To get a quote or for advice on D&O insurance, please get in touch. We offer insurance from a wide range of insurers and our team are experts at finding the right policy for you. Call us on 0800 731 6242 or email us at info@flatsdirect-uk.com.