What is Directors & Officers Liability Insurance?

Directors and Officers (D&O) insurance protects directors, officers, and other high-ranking executives of a company against legal claims made against them for alleged wrongful acts or negligence in the performance of their duties.

What does Directors & Officers Liability Insurance cover?

D&O insurance policies typically cover claims related to:

Breach of fiduciary duty

This can occur when a director or officer is accused of putting their personal interests ahead of the company’s interests. Each country may have a different law governing this.


Claims can arise from decisions made by directors or officers that result in financial losses for the company or its stakeholders.

Regulatory action

Directors and officers can face claims from regulatory bodies related to consumer protection, workplace health and safety, taxation, environmental, securities, and corporate law, again depending on the county you operate and/or regulated in.

Employment practices

Claims can arise from allegations of discrimination, harassment, wrongful termination, or other employment-related issues.

Claims can also arise in relation to Use of Inside Information, Contract Disputes, Bankruptcy and Merger/ Acquisition/ Takeover

D&O insurance can provide coverage for legal defense costs, settlements, and judgments against directors and officers. It can also protect the personal assets of directors and officers in the event they are found personally liable for a claim.

What isn’t covered?

 Usually lawsuits between directors and officers within the company are not covered;. Likewise, if a director or officer is accused of fraudulent acts, defense costs are provided until final judgment proving guilt. If the director is found guilty of fraud, they would be required to repay all defense costs.

Why buy D&O Insurance?

D&O insurance is typically purchased by companies on behalf of their directors and officers, but some policies may also cover claims against the company itself. The amount of coverage and premiums will vary depending on the size and type of the organization, as well as the level of risk associated with your industry and your company’s specific operations.

How much does D&O Insurance cost?

The cost of any D&O insurance depends on a number of factor including industry, size (assets), debt, revenue, past claims, profile of the directors. Usually, companies that have been in business for longer will probably pay less for D&O insurance. A company with a long history and an experienced board of directors poses a lower risk of litigation and can expect to pay less than a new company with no track record or experience. For more information request a quote.

When should I consider D&O insurance?

D&O insurance is typically purchased when a company is looking for external funding and/or wanting to attract quality executive leadership. Investors may expect D&O insurance as a prerequisite to protect their personal liabilities before even considering investing in your company.

If you’re an emerging tech business and would like to understand more, you may find it helpful to Contact Us for a no obligation consultation.


Why work with Continuum?

Our in-depth knowledge of both the industry and the appetite of insurers allows to advise clients on the appropriate solutions to help them protect their business and offer value to their clients. We take a client-centric approach, appreciating that insurance may be a future requirement rather than an immediate need and advise on the timing of policy inception as well as helping with payment schedules and budgeting requirements. Our aim is to advise and assist digital asset firms from seed to flower and become a long-partner with them through their journey to success.

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