There are various types of professional insurance coverage which you may want to consider for your business and its employees, executives, board members, and shareholders.

Two of the main types of this coverage available are Directors and Officers insurance, commonly referred to as D&O insurance, and professional indemnity insurance cover.

You should determine which is the most relevant and beneficial for your organisation before searching for the best prices available.

If you are not sure, speak to one of our specialist consultants who will be able to put together a bespoke insurance package that suits your business needs so you are not paying for an off the shelf product that may include insurances you do not need.

D&O Insurance

It has, unfortunately, become increasingly common for employees, businesses, and third parties to take legal action against the individual directors and officers of a company.

Typically these are cases of corporate mismanagement and depending on the type of organisation you run, such cases could cost your business and the individual concerned a considerable amount of money, not to mention the damage it can cause to your professional reputation.

For example, a director may be responsible for arranging their business’ insurances. A fire breaks out which results in the business’ premises being destroyed, a result of which it is discovered that the director had inadvertently failed to keep the insured values up to date. This kind of oversight would result in the insurers significantly underpaying for the loss, meaning that that premises can’t be rebuilt with the proceeds from the insurance alone. In this instance, the other Directors of the business decide to sue the director responsible to recoup the costs.

D&O insurance protects against such action; a Directors and Officers insurance policy is important to consider as a business owner to ensure you are financially protected.

Professional Indemnity Insurance

Professional indemnity cover is ideal for those businesses that offer virtually any kind of service to their clients where they are providing professional advice.

Some businesses may demand that you have professional indemnity cover in place before working with you.

This is because it protects them and your organisation against financial losses or damages caused by advice, consultation, or work provided by your company.

For more information on professional indemnity cover, as well as D&O insurance and other forms of professional insurance, call The Insurance Octopus today.