Directors & officers insurance
D&O protects senior employees against claims of mismanagement, allegations of bad behaviour, overstatements in a pitch deck… even an unrefined social media post.
Be quote confident. We'll beat the price of any like-for-like quote. T&Cs apply.
What is directors' and officers' insurance?
Directors' and officers' insurance, also known as management liability insurance — D&O insurance for short — exists to protect entrepreneurs from the risks associated with running a business.
It is available for businesses of any size, whether it’s a small startup or a large organisation.
Is your business raising and scaling?
Our specialist brokers provide custom cover for high-growth tech companies with complex risks — from web3, fintech, medtech, blockchain, VC firms, SaaS and more — whether you're at seed stage or IPO ready.
Why get directors' and officers' insurance?
It's often essential for companies looking for external funding
It’s common for investors interested in a company to make D&O insurance a must-have requirement. It can protect directors and officers from allegations of mismanagement. D&O cover can provide protection against legal action, fines, penalties, and disqualifications from being a director. If you're a high-growth tech business, speak to one of our advisors about your insurance requirements.
It can protect from three angles
D&O cover is designed to provide three-sided protection. One side aims to cover directors personally for fines, penalties and legal expenses. The second is built to reimburse the company for paying on behalf of the directors. And the last can cover the company should it be named in a lawsuit.
Professional indemnity cover often isn’t enough on its own
It's a common misconception that personal liability claims are covered under professional indemnity, but this is unlikely. A separate D&O policy is the only way to ensure personal protection for those with management responsibility in your business.
Be quote confident
We're big on fairness. So if you find a lower price for a comparable quote, we won't just match it — we'll go one better and beat it.
So even better than apples to apples, apples to better apples. We're talking Galas to Braeburns.
As you'd expect, T&Cs apply.
What does directors' and officers' insurance cover?
Who is directors' and officers' insurance for?
If your directors or management team have legal or regulatory responsibilities to employees, the public, regulators, investors or other directors, then D&O liability insurance should be considered.
It can be particularly important for companies that have raised or seek investment from external shareholders. All firms that fall under the Senior Managers Certification Regime (SMCR) have an increased risk of ensuring they act appropriately. D&O is even more relevant for these firms as it ensures your employees are covered if they unintentionally run foul of their regulatory responsibilities.
What types of claims does directors' and officers' insurance cover?
D&O personal liability claims can cover a range of issues, from breaching health and safety laws and allegations of cyber-bullying, to misrepresentations in a pitch deck, or errors in financial reporting.
Things to consider when choosing directors' and officers' cover
If you have shareholders that own 15% or more of the company check for a “major shareholder exclusion” — this effectively excludes any claim brought by a shareholder against the business that owns 15% or more of the company’s shares.
Should you have shareholders, business activities or contracts with North American jurisdiction, make sure your jurisdiction allows for worldwide claims. Another thing is to ensure your limit is high enough. Many D&O plans have an aggregate limit, meaning another director or officer could use it up should a claim be made — leaving you potentially exposed.
What to watch out for
It's key to remember that directors' and officers' insurance only covers claims in connection with how the business is governed — not the business activities it carries out. You may also need public liability insurance and professional indemnity insurance to protect the company as a whole.
Once you've completed a quote, you'll be able to view a summary of cover. Please always refer to your policy documents for full details around exclusions, terms and limits of your customised cover. Read our guide to understanding your policy documents.
What's not covered?
D&O insurance includes a range of features, but as with all policies, there are some things we cannot cover, which, for example, include:
- Deliberate dishonesty, omission or criminal acts
- Claims arising out of, or linked to the public offering of any equity
- Claims brought by a company insured in the USA
- Any claims or circumstances known before the policy was issued.
- Claims made against the company for violation of competition rule or law or failure to perform your professional services
- Claims made against the company linked to the infringement, misuse or abuse of intellectual property rights or data protection legislation
- Actual or alleged bodily injury — excluding mental anguish or emotional distress — or property damage — excluding health and safety costs or environmental liability costs
D&O insurance claims
There are various types of directors' and officers' insurance claims that can affect different industries, but here are a few examples of specific claims that we could cover:
Misleading investors
The CFO of a startup business presents incomplete or misleading information to an investor who loses money as a result. D&O cover would protect the CFO's personal assets by covering legal expenses in a lawsuit where they are named individually.
Defamation
A company director is interviewed for an industry magazine and makes misleading, false or defamatory statements about a rival business. D&O insurance can cover the legal and compensation cost of a resulting lawsuit.
Regulatory investigation costs
The police are formally investigating a company director who has received details of potential charges alongside the police's lines of enquiry. Your D&O policy would cover the legal costs associated with dealing with the investigation on behalf of the director involved.
We offer D&O cover to over 1,000 industries
From cider wholesalers to zoologists, and landscape gardeners to haulage contractors, we insure a wide range of directors and officers within limited companies to personally protect them from the risks associated with claims of mismanagement.
Here are just a few of the diverse industries that Superscript has already provided D&O cover for:
- Medtech companies
- Mortgage brokers
- Fast food delivery companies
- Interior designers
- Tradespeople
- recruitment consultants
- Website designers
- Supermarkets
- Microbiologists
- Property developers
- Publishers
- Fintech firms
To see if we offer directors' and officers' insurance for your industry, simply click ‘Start your quote’.
How do directors' and officers' insurance claims work?
You make a claim
Log in to your online account and go to the ‘Make a claim’ section. Here, you can make a claim directly — there's no need to call us.
We'll ask you for some details about your claim, including the date of the claim made against you, the type of claim and its detailed description.
You can also attach any relevant supporting documentation like a letter of demand or a statement of claim.
We'll get on the case
Once submitted, your claim will be assessed.
If the claim is large, we may need more information from you. Or, if it's small, it may be able to be settled quickly without the need for further information.
Either way, we'll keep you regularly updated and you'll be able to see the status of your claim on our customer portal.
Your claim is settled
After it's been assessed, we'll let you know if your claim has been successful or not.
If you’re liable for something we will assist you with legal support and cover legal and compensation costs where appropriate.
Directors' and officers' insurance FAQs
What is directors' and officers' insurance?
Directors' and officers' insurance is designed to cover the cost of claims made specifically against a business's directors and officers (rather than the company in general, or specific employees in non-management positions).
Who needs directors' and officers' insurance?
If your business is set up as a partnership or limited company (i.e. you're not a sole trader) and therefore has directors or key managers (officers), directors' and officers' insurance may cover the cost of compensation claims made against them by shareholders, investors, employees, regulators or third parties.
Is D&O insurance the same as management liability insurance?
Yes, these are two names for the same type of insurance.
What if I’m in charge of several businesses?
No matter how many companies you’re involved in, you could be covered for your activities within all of them, as long as you provide this information when taking out your policy. And if your responsibilities increase at a later date, just give us a call and we can update your policy, we won't charge any admin fees.
What if I don’t hold a considerable share in the company?
It doesn’t matter how big or small a share you hold in a company. If you have management responsibilities, particularly if they’re of a legal or regulatory nature, then you might want to consider D&O.
What happens if I sell my shares?
Selling your shares in a company may or may not affect the level of D&O cover you need. However, whenever your role or position changes, you should always let us know to ensure your policy is up-to-date.
Is directors' and officers' insurance the same as a fidelity bond?
No, they are not the same thing. D&O insurance can cover claims made against directors and officers of a company for acts such as neglect, breach of trust, making misleading statements or breach of duty. Fidelity bonds (or fidelity insurance) covers the cost of criminal acts such as theft, fraud or forgery by an employee.
What is not covered under directors' and officers' insurance?
D&O insurance does not cover claims made against the business as a whole, only those brought against named individual directors and officers of the company. It also doesn't cover any acts that are established as being criminal, fraudulent or deliberately non-compliant with relevant regulations.
Who is covered under directors' and officers' insurance?
Rather than covering a business as a whole, D&O insurance protects the personal assets of a company's directors and officers in the event that a claim is made against them personally (for either actual or alleged mismanagement) by a third party, such as an investor, an employee, a competitor or a customer.
Boost your cover with legal protection insurance
Covers compensation awards, professional fees and legal costs associated with a range of legal disputes.
Why choose Superscript?
Cover for over 1,000 types of business
Five-star customer service and claims support
Flexibility to adjust your policy without fees
We insure thousands of innovative businesses
- 22 Jul 20248 minute read
Cybercrime and the retail industry: How to protect your shop
The threat of cybercrime is rising and can affect all businesses, large or small. Read our guide to how retail business owners can protect their shops from digital threats.
- 19 Jul 20242 minute read
What to do when you face a system outage
When a third-party system outage causes your business issues, cyber insurance could reimburse the income you lose. Read how.
- 15 Jul 20244 minute read
Boosting your independent retailer business
Looking to maximise your retail business? Check out these tips to boost your independent retail business and stay ahead of the curve.
Authorised by the FCA
The FCA supervises UK financial services firms to protect consumers. We are directly authorised and regulated by the FCA and our Firm Reference Number is 656459. These details can be confirmed on the Financial Services Register at www.fca.org.uk or by calling the FCA on 0845 606 1234.
A-rated financial strength
Our insurance products are underwritten by Standard & Poor’s A-rated financial strength or higher. This means the underwriter has been independently assessed by the world’s leading credit rating provider and found to have a strong capacity to meet financial commitments (pay claims).
Protected by the FSCS
If you are a business with an annual turnover under £1m, charity with an annual income under £1m, or trust with net assets under £1m, then you will be entitled to compensation from the FSCS in the unlikely event we cannot meet our obligations. Full details and further information on the scheme are available at www.fscs.org.uk.