MANAGEMENT LIABILITY (D&O) 

MANAGEMENT LIABILITY (D&O) 

MANAGEMENT LIABILITY (D&O) 

If you’re running a business, Directors and Officers (D&O) insurance is non-negotiable. 
D&O is a form of liability insurance designed to protect the personal assets of corporate directors and officers, as well as their spouses, in the event they are sued for actual or alleged wrongful acts in their many duties in managing a company. 
 
Coverage extends to legal fees incurred, any settlements, and other costs associated with defending against lawsuits that stem from claims of mismanagement, breach of fiduciary duty, or other misconduct in the management of the business. D&O insurance can also cover any legal costs the company may incur in defending you (which is why D&O is paid by the company, not you or other board members as individuals). 
The Importance of (D&O) insurance... 
It’s important because the “limited liability” part of a limited company means that the business cannot be pursued for money, but there are personal liabilities in the management of the business which – as a Director – involve a personal liability which extends to you, your family and even your estate. 
It’s also important because some of the cases which may be levelled against you can have criminal consequences: the Health & Safety Executive, for example, is endowed with powers of criminal prosecution. Most Directors don’t know it (until it matters!) but D&O cover includes the ability to engage criminal lawyers on your behalf. 

The key components of D&O insurance are: 

Employment Practices Liability (EPL) 
This covers employment claims. 
Company Legal Liability (CLL) 
This protects the company and its officers during investigations by statutory body (e.g. HMRC, HSE). 

Experienced D&O Brokers in London 

At Merlin, we’re businesspeople too. We know the pressures of running an operation, and we’ll help you create a workable risk management strategy with D&O included, mindful of the specific risks of your directors and officers. 
We’re particularly experienced in handling the D&O landscape in multiple territories. If your business runs several entities with (not necessarily matching) offices registered in multiple territories, and possibly conducting business in even more places, it is essential to have clear lines of corporate accountability and appropriate cover. We will be only too pleased to help. 

For more on D&O Insurance, talk to our friendly and expert team. 

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