Directors & Officers Insurance

SME Insurance 

Directors & Officers Insurance

Defending directors and officers against damaging claims.

It is often believed that a director of a business does not have any liability regarding their corporate business actions, after all, most businesses have some form of public liability insurance. The truth is, that while the company can be covered with public liability protection and other related business insurance, the individuals who work within the company are left unprotected if a person acts improperly and does something wrongful.

We understand the duties corporate directors and officers face and will source suitable cover to help mitigate their risks and plan out a trust worthy, suitable risk management. To ensure we provide the right level of D&O insurance, we will consider what to include based on factors such as turnover of the company, business activities, sector, number of employees and more.

Our directors and officers insurance policy coverage includes:

  • Up to £5m Directors and Officers Liability Insurance
  • Past, present and future Directors covered as insured persons
  • Any One Claim settlement basis
  • Employment practices liability cover for the company
  • Liability insurance cover for the company
  • Broad definition for actual or alleged Wrongful Acts

What is Directors and Officers Liability Insurance

Directors and officers insurance is a type of insurance policy which provides a financial defence for a group such as business director, partners and officers (usually in managerial roles). This type of insurance covers the part of the claims for compensation made against the insured individuals, rather than the company as a whole.

Directors, partners and officers within a company have many responsibilities, to their employees, members of the public and their shareholders or investors. These responsibilities can sometimes expose the individual to liability for actions they make which may affect company health. This can mean they are personally subject to claims which can lead on to fines, compensation or prison sentences.

Who Needs D&O Insurance Policies

If your company has directors, or key managers, then directors and officers insurance would be a good defence against a personal liability claim case and the cost of financial compensation. D&O liability insurance also covers the group of individuals for the cost of defending within official proceedings such as court hearings or prosecution in the most serious cases.

D&O insurance can cover claims made by regulatory bodies, shareholders and investors and creditors. It can also cover claims brought in cases of breaching European legislation as well as insolvency. Get your quote for SME insurance and D&O cover with Erskine Murray insurance brokers today.

What does a directors and officers insurance policy cover?

There is a key difference with directors and officers insurance compared to other business insurance policies. A directors and officers insurance policy will cover the individuals against claims for compensation, rather than the company as a whole. This can be beneficial for the directors, partners and officers within a business who have many different responsibilities which can be exposed to personal liability for actions they make which can affect the company.

Do I need directors and officers insurance?

Any business which has directors, key managers or partners can find D&O insurance to be a beneficial policy to hold. It covers individuals for the financial cost of defending against claims and legal proceedings such as court hearings or even prosecution. Claims can be made by a wide range of bodies, from shareholders and investors through to regulatory bodies and creditors.

Examples below:

Defence costs incurred as a Director: for example, a shareholder pursues legal action following alleged payment of excessive salaries at the expense of low dividends to shareholders.

Civil fines and penalties: a Senior Account Ofcer could be fned by HMRC if they fail to take reasonable steps to ensure the company takes adequate accounting arrangements. A fine could run into the thousands.

Corporate manslaughter or killing: if a driver of a company fell asleep and injured or killed other motorists, an operations manager could potentially be liable if it was deemed controls weren’t in place to ensure the driver adhered to regulations.

Crisis and PR management: a customer who allegedly bought expired foods from a supermarket, and consequently sufered severe food poisoning, threatened to go to the media and instigate litigation. As the directors were at risk from reputational damage and an investigation from HSE, they appointed a public relations consultant and lawyer to help limit the adverse publicity.

Is directors and officers insurance the same as professional liability?

Directors and Officers insurance is a form of professional liability insurance which actually goes a step further. As well as covering the liability of directors and officers as individuals, it also covers the liability of the company to compensate its directors for the expenses incurred defending any claims made. Professional liability cover is normally to protect businesses and individuals against the cost of defending negligence claims.

Why is directors and officers insurance important?

D&O insurance is a highly valuable policy to hold, as it helps to protect the personal assets of corporate directors and officers as well as their spouses in the event they are sued by employees, competitors, investors or other parties for actual or alleged wrongful acts while managing their company.  There can be a great deal of reasons directors may have a claim taken against them, so this policy can really protect the livelihood of directors!

How much directors and officers insurance do I need?

The amount of insurance and the costs for the cover can vary substantially depending on the size of the business, the coverage required, your industry, revenue, debt and legal history. The best way to establish how much insurance is required is to speak to one of our expert team today.  We can help you to choose the right level of cover to suit your needs as well as your budget.

To find out more about cost, please click here.

SME Insurance by Sector

D&O Cost

The costs of directors and officers insurance can vary substantially depending on the cover required

D&O Policy

Directors and partners of a company have responsibilities above and beyond other employees of the firm.

Shops and Offices

From office blocks and home offices to hairdressers, florists and newsagents, we cover the entire scope of this sector.  

Commercial Property Owners

For property owners, investors or developers, single property to portfolio's, we have the solution.

Residential Property Owners

For property owners, landlords and associations, we deliver a policy that covers all related risks.


One policy for fleets of all sizes. Our online platform compares insurers within minutes, so you know you have the right cover.

Professional Indemnity

Often referred to as 'PI', a profession-based risk management package.


Our package covers every single trade. Simple, effective and delivered by the same or following working day.

Motor Trade

For dealerships, mechanics, valeters, bodyshops and everything in-between, we've got you covered.


Including buildings, contents, liability, unoccupied and rental protection.

Golf Course

Golf courses possess specific risks which specialised golf course insurance can help protect you against.


Whether you are a small independent bakery, or a larger chain, it is vital you consider your level of business insurance.

IT Contractors

From basic repairs and builds through to emergency cover, your clients call on you for your expert knowledge and skill.

Coffee Shop

There are many risks associated with not only running a successful business, but in serving hot drinks and food to the public.


Professional indemnity insurance is an important policy, as you are offering professional services to other people & businesses.


Your clients call on you for your expertise, knowledge and skill, whether you are a quantity or land surveyor.

Business Interruption Insurance

Business Interruption insurance, also known as BI, is a much-misunderstood cover which can often be overlooked by small business owners.

Wholesalers Insurance

Erskine Murray can help wholesalers to find the appropriate insurance to manage the risks to your industry and provide the right protection for your business needs.

Tech Start Up Insurance

Here at Erskine Murray, we make it easier for you to cover and protect your business with several appropriate policies packaged together.

Media Professionals Insurance

The media and marketing industries can be vulnerable to claims of negligence for what are in fact basic errors.

High Net Worth Insurance

High net worth insurance is ideal for people with high profile occupations such as sports people, actors, singers and other people in the public eye.

Graphic Designer Insurance

As the risks can be fairly wide ranging, there are lots of appropriate insurance policies which can be useful for graphic designers.

Civil Engineering Insurance

At Erskine Murray we understand the many risks associated with those involved with working at height, extreme depth and working with asbestos.

Business Owners Policy Insurance

An enhanced business insurance policy which combines property insurance alongside general liability insurance.

Contractors All Risk Insurance

Whilst all construction sites are different, there are still common risks and threats shared by them all.

Who do I


If you would like to talk more about your SME Insurance needs please contact Rob.

Rob Marshall

Head of SME

Who do I


Rob Marshall

Head of SME

Employee Benefits

Have you considered an Employee Benefits package? Such a policy can help you attract and retain a highly skilled and dedicated workforce.

Claims Support

We will act on your behalf, to manage your claim from initial notification to settlement. We will also make sure you are kept up to date throughout the entire process.