Personal Directors and Officers Liability Insurance

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Personal Directors and Officers

Liability Insurance

‘If you can keep your head when all about you are losing theirs and blaming it on you.

If you can trust yourself when the board doubt you but make allowance for their doubting too.

If you can bear to hear the truth you’ve spoken twisted by human resources to make a trap for fools.


Personal Directors and Officers

Liability Insurance

You are a director, financial director or a non-executive director in a private limited company. You are in a position of authority, you are accountable and therefore personally exposed.

This scheme is aimed at those directors, officers and non-executive directors who see the benefit of buying individual cover privately to protect themselves.

Directors & Officers Liability Insurance protecting the whole of the firm can sometimes be prohibitively expensive, the owner or the board may have overlooked the need for it, or be unwilling to buy it.

This is an insurance cover available to you personally to protect you personally at a very attractive premium.

You think you would be entitled to expect protection working under a limited company status, however with a continuing trend towards a blame culture, where finding someone personally responsible is increasingly usual in the event of a problem, costly law suits and awards are becoming more commonplace.

Directors & Officers Liability Insurance was at one time considered only essential for large public corporations and claims were rare against directors. See claims examples attached on the adjacent pages on how, as a director or non-executive director of a private limited company, you can become accountable.


Directors & Officers are seen as agents for the company and therefore liable for losses the company incurs as a result of errors of judgement or action. Directors and Officers have many obligations both in common law and in statute. Claims can now be brought about by any party that has an interest in the affairs of a company. If a shareholder or third party has lost out as a result of your actions as Director or Officer you could be Accountable.

Our premiums start from only £105 per year for holding between 1 and 3 directorships, this offers excellent value for money for that essential peace of mind necessary for modern business life.

Directors and Officers

Claims Scenarios

In all these situations one main theme is painfully obvious – you cannot hide behind your Employers limited status.

Health & Safety

Breaches of HSE regulation may result in costly and time consuming investigations. In one instance nearly £900,000 was spent defending a Managing Director and several Managers as they faced a criminal prosecution for negligence and failure to provide a safe working environment.

Non-Executive Directors



Example 1

Two directors were held liable for payments made to another director. The payments took place shortly before the company went into liquidation. It was successfully argued by the firm’s creditors that they should take precedence over the director and an award of £800,000 was made. Directors have a fiduciary duty to take the correct course of action. It is also an established part of the UK legislative framework that directors should not profit from their position.

Example 2

A financial director was asked by the Board to exercise a break clause on a property surplus to requirements. He failed to carry out the instruction properly leaving the property on continued rent for a further 5 years. Initial reserve £400,000.

Example 3

Defence costs totalling approximately £16,000 were paid after a director was held responsible for allegedly failing to arrange death-in-service insurance coverage.



Key Features

Full retrospective cover

Cover for punitive and exemplary damages

Libel and slander cover

Cover for wrongful acts in mergers and acquisitions

Individual Directors & Officers

Premium Matrix

All Premiums are inclusive of Insurance Premium Tax


Section 1: Details of Proposer

Name of Proposer (Individual): Address:

Postcode: Email address: Telephone contact:

Section 2: Directorships (including Non-Executive Directorships)

(use separate sheet if necessary)

Section 3: Previous / Current Insurance

Yes: No: If the answer is YES please state (use seperate sheet if necessary):

Which Company: Insurer: Indemnity Limit: Expiry Date:

Yes: No: If the answer is YES please provide details below (use seperate sheet if necessary):

Company Name Proposer's Shareholding (if any)



Individual Directors and Officers Liability Insurance Policy

Business Activities of Company Company Registered Address

Have any of the Companies ever had any Insurer decline a proposal or cancel or refuse a Directors and Officers Liability Insurance?


Section 4: History of the Company / Companies

During the last 3 years have any of the companies:

Changed name? Yes: No:

Been involved in any acquisitions or mergers? Yes: No: Sold or ceased trading with any subsidiary company? Yes: No: Changed the capital structure of the company? Yes: No: If the answer is YES to any of the above questions, please provide details below (use separate sheet if necessary):

Section 5: Claims Information / Circumstances

Yes: No: If the answer is YES please provide details below (use separate sheet if necessary):

Yes: No: If the answer is YES please provide details below (use separate sheet if necessary):

Section 6: Indemnity Limit

Please select the amount of Indemnity required:


Section 7: Declaration



Date: Is the Proposer aware, after enquiry, of any circumstance or incident, which may give rise to a claim against the Individual or Company in such capacity?



I declare that the statement and particulars in this Proposal form are true and that no material facts have been misstated or suppressed after enquiry. I agree that should any of the information given by us alter between the date of this Proposal and the inception date of the insurance to which this proposal relates, I will give immediate notice thereof. I agree that this Proposal, together with any other information supplied by us shall form the basis of any contract of insurance effected thereon.

Caunce O'Hara & Co Ltd and DUAL Corporate Risks Ltd recommend that you keep a record of all information supplied for the purpose of entering into an insurance contract (including copies of this Proposal Form and correspondence). Caunce O'Hara & Co Ltd and DUAL Corporate Risks Ltd are authorised and regulated by the Financial Services Authority.

Has there been or is there now pending any claims against the individual or the Company?


Caunce O’Hara & Company Limited is an independently owned insurance brokerage.

It was established in 1995 and now ranks within the top 100 brokers in the UK.

We have offices in Manchester and Leeds, delivering innovative lateral solutions

to our clients insurance programmes.

Our main activity is arranging corporate insurance programmes but we also

write specialist insurance schemes for Liability, Professional Indemnity and

Directors & Officers Liability Insurance classes.

We are keen on providing the best in customer service and believe our

administration and claim paying systems are fast, efficient and reliable.

For more information call Chris Caunce, Director, Caunce O’Hara


Tim Bell LLB (Hons), Caunce O’Hara

Tel: 0161 833 2100

Fax: 0161 839 2100



Caunce O’Hara will place your business through underwriting agency,

Dual Corporate Risks. Cover is effected with Insurers Arch Insurance Company

(Europe) Limited, subsidiary of Arch Capital Group Limited.

Arch Insurance Company (Europe) Limited has provided Dual Corporate Risks Limited

an exclusive rolling underwriting contract to accept business on their behalf.

Dual Corporate Risks and Arch Insurance Company (Europe) Limited

are regulated by the FSA.

Both Standard & Poor’s and A.M. Best have assigned

Arch Insurance Company (Europe) Limited A-(Excellent) Financial Strength.

Details of Arch Capital Group Limited can be found at their website

Member of the British Insurance Brokers Association Authorised and Regulated by the Financial Services Authority B I B A





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