Directors and officers of businesses have various duties, responsibilities and powers in connection with their position. In most cases these are set out in a job description or terms of reference. As a result they can be held responsible for a range of issues including:
- health and safety
- data protection
- maintaining satisfactory accounts
Directors' and officers' liability insurance (D&O) enables the directors and officers of a company, or the company itself, to cover themselves against such damages.
If a director or officer is found to have accidentally acted outside their terms of reference and this results in a claim, compensation and legal fees will be covered by the D&O policy. If the act was deliberate, then it may not be covered.
Your insurance broker will provide more information on this type of policy – see specialist insurance advice for your business.
Structure your business
Name your business
Register your business
Choose your premises
- How to employ staff for the first time
- National Minimum Wage and National Living Wage rates
- Carry out pre-employment checks
- Ensure your workers are eligible to work in the UK
- Get employers' liability insurance
- Issue a written statement of employment
- Set up your payroll and register for PAYE with HMRC