Do I need D & O Insurance?

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The value of Directors & Officers insurance

A question new clients often ask us is: ‘Do I really need Directors and Officers (D&O) insurance?”  We would say yes, and that’s not just to provide peace of mind.

Our award winning claims team* has seen cases that run into six figures, so when it goes wrong, it can go wrong in a BIG way, leaving you personally liable for costs, damages and a load of unwanted stress.

Being a director of a management company exposes you to personal financial risk.  The last claim we handled was for more than £110,000 (June 2016).

If you make a decision that causes a financial loss to someone, perhaps another leaseholder or a contractor, you could be held personally financially liable.

The same applies if you fail to comply with some regulations. Whether or not you are aware of them, you could still be personally liable.

Directors & Officers liability insurance can help protect you.  While the likelihood of being held liable is relatively small, if something does happen then the consequences can be serious.  And it is important that you have experts on your side to help you when you need it most.

Here are a few examples of the benefits of Directors & Officers cover:  

  • A director failed to identify and rectify essential repairs within his block of flats. As a result the lessees saw the value of their property/ investment fall and a law suit was filed. The insurers helped defend the client where possible and paid compensation to the disgruntled lessees.
  • A disgruntled employee, working at a block of flats, filed a law suit against the limited company for alleged discrimination, suing for compensation. The company used their Directors and Officers insurance to fight the allegations and cover legal costs involved.
  • An independent contractor was appointed by property directors to provide quotes for essential works and improvements. Without consulting the other lessees, the directors instructed the tradesmen to carry out the works. Insufficient funds were available to cover the costs and the Directors were liable for the costs involved.  In such situations, Directors and Officers cover can help mitigate the costs of any claim awarded against you, as well as legal costs.

*Broker Claims Team of the Year 2016 awarded by Insurance Times Magazine.