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Clarke Williams Ltd
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01732 252 898

Clarke Williams Insurance Brokers

Clarke Williams Ltd Insurance Brokers

The Difference Between Directors and Officers and Professional Indemnity Insurance

 

A common question asked by client’s is what is the difference between Directors’ and Officers’ (D&O but also known as Management Liability) Insurance and Professional Indemnity Insurance (PI).

In short;

  • Directors & Officers covers the management decisions.

  • Professional Indemnity covers errors and omission in the business you are in.

For instance, if an accountant or advisor gave bad advice leading to a large financial loss, this would fall under Professional Indemnity Insurance. Subsequently the board of directors may be sued for hiring/ failing to supervise the individual who gave the advice – that’s Directors & Officers Insurance.

Its important to remember that in litigation, insurance claims can be multi-tiered and will not necessarily be aimed just at an individual but also potentially the entity and its directors, partners etc which is why we would always recommend that businesses hold Professional Indemnity and Directors & Officers Insurance.

One thing not always appreciated by businesses about Directors & Officer insurance is that such policies can cover not just the directors and officers (as the name implies). It also covers the managers, or any one in a position of power and the corporate entity itself, in respect of its own liabilities.

Did you know?

Insurers estimates that the take up of Directors & Officers Insurance in the UK as little as 10-26% between SME’s and micro SME’S.

For many policies in the market place the average premiums are starting at £150 -£250 per year which when considering the risks of actions under Corporate Manslaughter, GDPR or regulatory breaches, could your business afford not have it.

If you would like to discuss a Professional Indemnity or Directors & Officers Insurance quotation for your business call one of our advisors on 01732 252 898. We are able to help the following industries to name a few:

  • Accountancy
  • Recruitment
  • Construction
  • Manufacturing
  • Technology
  • Banking and Finance
  • Surveying
  • Architecture and Engineering

 

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

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    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 http://www.fca.org.uk/ . 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
    Tonbridge
    Kent
    TN9 1FU

    Tel: 01732 252 898

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