Directors & Officers insurance is designed to support the individuals that work in the company if they should ever face an allegation of wrong doing. This may include a breach of trust, a breach of duty, providing misleading information or wrongful trading.
The director or officer of a company has a duty to ensure that the business is run correctly. Some of these duties are legal requirements, such as recent changes to the Companies Act and make the director personally liable for failure to comply. If that wasn’t enough, the fines that can be made are unlimited.
Actions can be brought up not just by shareholders but also employees, customers, suppliers and regulators.
Read more about the Duties and Responsibilities of a Director or Senior Manager here >> http://www.iod.com/guidance/briefings/cgbis-directors-duties-and-responsibilities