Directors and officers insurance
Directors and Officers (D&O) Insurance provides insurance cover for company directors and protects them against claims made against them and which arise from actions taken by them on behalf of the company whilst under their direction.
Directors are usually automatically indemnified by the company itself for any failings that may occur in the execution of duties whilst a D&O policy, paid for the by the company, will protect against a wide range of third party claims.
Claims against directors can arise from a variety of sources, for example shareholders or employees. In the case of large public companies D&O cover is vital as it would be unrealistic to expect a director to be intimately acquainted with every facet of the business. Potential liability can arise from a variety of directions, so insurance cover of this nature is essential not only to protect directors but also to assist in the recruitment of new directors from time to time.
Directors cannot insure themselves against being found guilty of criminal actions whilst executing their duties as a director. So D&O insurance would not extend to providing cover in the event that a director was found to have permitted the company to trade whilst insolvent.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
Twas the site before Christmas...
A rhyme for the industry and a thankyou to our supporters.
Plumbing and heating systems in schools
New apprentice pay rates coming into effect in the new year
Addressing the impact of recent national minimum wage changes.
EBSSA support for the new industry competence structure
The Engineering and Building Services Skills Authority, in working group 2.
Notes from BSRIA Sustainable Futures briefing
From carbon down to the all important customer: Redefining Retrofit for Net Zero Living.
Principal Designer: A New Opportunity for Architects
ACA launches a Principal Designer Register for architects.
A new government plan for housing and nature recovery
Exploring a new housing and infrastructure nature recovery framework.
Leveraging technology to enhance prospects for students
A case study on the significance of the Autodesk Revit certification.
Fundamental Review of Building Regulations Guidance
Announced during commons debate on the Grenfell Inquiry Phase 2 report.
CIAT responds to the updated National Planning Policy Framework
With key changes in the revised NPPF outlined.
Councils and communities highlighted for delivery of common-sense housing in planning overhaul
As government follows up with mandatory housing targets.
CIOB photographic competition final images revealed
Art of Building produces stunning images for another year.
HSE prosecutes company for putting workers at risk
Roofing company fined and its director sentenced.
Strategic restructure to transform industry competence
EBSSA becomes part of a new industry competence structure.
Major overhaul of planning committees proposed by government
Planning decisions set to be fast-tracked to tackle the housing crisis.
Industry Competence Steering Group restructure
ICSG transitions to the Industry Competence Committee (ICC) under the Building Safety Regulator (BSR).
Principal Contractor Competency Certification Scheme
CIOB PCCCS competence framework for Principal Contractors.
The CIAT Principal Designer register
Issues explained via a series of FAQs.