As a director or officer of a company, you can be held personally liable for any breach of a duty of care arising from your actions or lack of action as a director or officer.
Your company will, therefore, need director’s insurance or officer’s insurance.
These can include breaches of company law or breaches of health and safety legislation and much more.
Directors and officers are liable for these breaches personally which means that without suitable insurance their personal assets are at risk.
This liability can be imposed by the courts irrespective of the protection normally provided in working under the ‘corporate veil’ of a limited company.
Directors’ and officers’ insurance is arranged to permit senior personnel within a business to protect their personal assets.