DIRECTORS & OFFICERS INSURANCE

The director of a company is in charge of making some significant calls for your organisation. As a result, they can come under fire through legal claims from unsatisfied clients, investors, or shareholders. When legal claims are made against your company, they can be explicitly targeted at the director. This is because the claimants believe that they are the ones responsible for whatever it is they’re unhappy about. Even if the director inadvertently did something that caused this claim to be born, they’ll be under fire. Consequently, this is required to help them through the claims process. The same can be said for the ‘officers’ in your business as well. Now, defining a director is straightforward as this is usually a role given to an individual. However, nobody is really hired under the ‘officer’ title. Instead, this term refers to multiple roles in your business.Strictly speaking, the legal definition of an officer covers all kinds of key managerial or supervisory roles. This means that many people within your organisation fall under this bracket and can be at risk in some legal situations. While directors should be aware of their legal responsibilities, officers don’t always realise what they are or aren’t responsible for. To make matters worse, you have officers at different levels in your organisation who regularly come into contact with clients, shareholders, etc. So, there’s every chance that a slip-up can happen, and a claim is made against them. Again, if claims are made directly against them, then they won’t have protection from your public liability or other corporate insurance policies. So, they will also need Directors and Officers Liability Insurance.