Directors Insurance Protection : Could my employees sue me for mismanagement claims relating to Corona Virus?


As a company director or manager there are a number of responsibilities placed upon you to act with care, in good faith, within the law and in the best interests of the company and employees.

Should someone allege that you have not met any of these responsibilities then a claim may arise against you personally.

Directors and Officers Insurance also known as Management Liability cover is provided in the event a business Director or individual in position of control commits a “Wrongful Act”.


Could my employee make a claim against me personally for contracting Corona Virus?


It is theoretically possible if an employer was going against government advice and enforcing what would be considered as unreasonable working practices.


Could a client make a claim against me personally for contracting Corona Virus?


Again this is theoretically possible if the business was going against government advice and enforcing what would be considered as unreasonable working practices. A claim might also be considered if a business was taking payment for services that it was reasonable to expect would not be carried out in current market conditions.

For both of these claims to be considered under a Directors and Officer Policy, they would have to show negligence in their actions that leads to a detriment suffered by either a third party or an employee.  

Most insurers split wrongful acts between those that cover the general duties and those for employment. 

The core cover is for Directors and Officers (general and employment matters), with optional entity covers Corporate Legal Liability (general matters should the claim be brought against them and not the directors) and optional Employment Practices Liability (employment matters).

For general duties, most insurers definition of “Wrongful Act” includes any breach of duty or negligent act, error or omission. COVID-19 related issues could be included under this cover. 

For employment “Wrongful Acts”, our insurance coverage for “failure to adopt adequate workplace or employment policies and procedures” could lead to COVID-19 related issues being included under this cover.

This would automatically be covered under the core Directors and Officers cover and the insured would also be covered by the optional Employment Practices Liability section if selected.

We recommend you review the policy wording for full details of cover.

At Clarke Williams we understand the personal financial risks faced by directors and officers. Your liability is unlimited, and even unfounded allegations against you need to be investigated and defended — costing you money.

Insurance can cost as little £200 for a small business. If you would like a no obligation quotation for Directors & Officers Insurance please do not hesitate to make contact.




Want to speak to one of our specialists?

Call or email us today for a comprehensive insurance policy at a competitive price.

Telephone: 01732 252898

Or email us using the form below.

Be safe in the knowledge that your business is protected.

Get a quote by calling our team on 01732 252 898

or submit your details below

Submit your details for a quote

    Contact Name

    Email Address


    Your Message / Enquiry

    Renewal Date (if applicable)

    How did you hear about us?

    I am happy to be contacted

    Clarke Williams Ltd are authorised and regulated by the Financial Conduct Authority under reference 758683. The Financial Conduct Authority’s Register can be accessed through . We are registered in England and Wales with Companies House under number 10317065. Our registered office address is Blue Bell Court, Sovereign Way, Tonbridge, Kent, TN9 1FU.
    Clarke Williams Ltd
    Blue Bell Court
    Sovereign Way
    TN9 1FU
    Tel: 01732 252 898
    © 2023 Clarke Williams Ltd