Directors and Officers Liability

Do I need Directors and Officers Liability as a Freelance Contractor?

Yes, most definitely! This provides financial protection for you as a self-employed contractor professional and director of your company in the event you are sued in conjunction with the performance of your duties as they relate to the company. As a director you have numerous responsibilities for which you can be held personally liable - this cover will provide for legal defence costs to protect your financial assets.

Why does a Freelance Contractor need this cover?

Many self-employed contractor professionals assume that they are covered for legal actions against them as they have a "limited liability company". This may not be true in all cases, and claimants may pursue you personally depending on the circumstances of the claim

What does Directors and Officers Liability Insurance cover?

This will often cover Employment Practices Liability, which represents a high percentage of the claims made on this type of policy. It also covers harassment and discrimination claims. Legislative breaches - e.g. Companies Act, Health and Safety Act, Data Protection Act. Alleged financial mismanagement of the company. Action arising from potentially libellous or slanderous statements.

Example Claim

The director of a company didn't submit the company's account to the Registrar of Companies on time - The Director would be prosecuted under the Companies Act.