If your business is accused of financial mismanagement, a legislative breach, a health and safety failure, or of breaching company law, then your policy steps in. As the director of your business you can be held personally liable for many reasons. Action can be taken against you by a number of people – a regulator, your end client, the taxman - if they think you haven’t been sticking to the rules.
Having directors’ and officers’ liability provides you with reassurance and a valuable safety net, covering any legal fees that may arise as a consequence of claims you have to defend.
Directors’ and officers’ liability provides cover for your legal defence costs and will protect your financial assets.
You fail to submit your company’s accounts to Companies House and are prosecuted under the Companies Act. In such a scenario you would be covered under directors’ and officers’ liability insurance.