Run Your Own Business? Make Sure You Protect Yourself With Directors & Officers Insurance

20/03/2020 18:26

There are plenty of advantages to running your own business, not least of which is having the freedom to make all the important decisions. All the responsibility sits with you but that also means when things go wrong the buck stops with you too.

As the business owner you are personally liable for your actions, including any mistakes you might make along the way. Those mistakes could lead to someone making a claim against you, which could in turn lead to fines, penalties, compensation or even imprisonment. Therefore, ensuring that you have the right protection to cover yourself and your business is vital.

What type of claims are covered by D&O insurance?

One of the key benefits of D&O insurance is that it protects company directors from litigious employees. It also covers claims from competitors, investors, vendors and customers. Some small business owners think their general liability or packaged business insurance policy will cover claims involving directors and officers. In the main this is not the case.

Claims may come about from an alleged or actual “wrongful” act. They include anything from harassment, unfair dismissal and discrimination to decisions or actions that have had a negative impact. Other common types of claims include actions by creditors, by business competitors and customers, and actions brought by regulatory bodies such as the Inland Revenue.

Why take out D&O insurance?

While some people will probably say that small businesses don’t necessarily need D&O insurance, the reality is that no one is immune from risks and allegations, particularly in today’s litigious society.

Without D&O insurance you could personally be the focus of claims which could lead to financial devastation. In the process this could also destroy your reputation as well as your business.

While D&O insurance has been growing in popularity among SMEs and is becoming a routine part of companies’ risk management process, there’s still a long way to go. It is important to consider every aspect of your business when you are thinking about insurance and protection. Ignore D&O insurance at your peril.

Why choose Tapoly?

Tapoly recognises the risks and what’s at stake for you. They also believe that protecting yourself and your business should not be onerous or expensive.

They are working hard to bring you a broad range of insurance products. Their mission is to enable SMEs and freelancers to protect themselves at a fraction of the cost charged by traditional insurers. What’s more, recognising how busy you are, they want to do that quickly and easily. They also want you to have the flexibility of cover you need. As much as they can, they don’t tie you down to annual contracts but allow you to choose how long you need cover for, whether that’s a few months, a few weeks or just a day.

Find out more about Tapoly Directors & Officers insurance and how much it will cost you. You can also check our full list of products and prices.