Directors’ and Officers’ Liability Insurance provides cover for your company directors and key officers whose roles come with specific responsibilities. If they are found to have failed in their responsibilities during their employment, legal proceedings can be taken against them.

Directors’ and Officers’ Liability Insurance can cover claims made by shareholders, investors, employees, regulators or third parties, against your directors and key personnel for:

• a breach of trust or duty, or failure to act in shareholders’ best interests
• a breach of legislation
• creditors and insolvency
• misleading statements
• wrongful trading.

In Ireland, company directors and officers have legal and regulatory responsibilities that, in the event of a wrongful act, can result in disqualification from their position, civil proceedings or criminal prosecution. Without the appropriate insurance in place, directors and officers may find it difficult to cover the costs of defending a claim in court, or paying any compensation that could be awarded.

The definition of a key person is determined by you. Fundamentally, a key person’s absence from your business will impact on your business operations and potentially the confidence of your customers, suppliers and other stakeholders. A key person could be someone who holds specific knowledge or experience that helps the business to meet essential regulatory requirements or it could be someone who is synonymous with your brand.

The amount of cover you take will depend on the impact losing the key person would have on your business. When calculating the amount of cover you need, your  broker will consider whether the key person is essential to the business’s income, the contribution they make to the business and what it would cost to replace them.

https://www.irishexaminer.com/business/arid-20332017.html