Directors’ and Officers’ Insurance in the UK

Mukwiri, Jonathan

Directors’ and Officers’ Insurance in the UK

Mukwiri, Jonathan

Authors

Dr Jonathan Mukwiri jonathan.mukwiri@durham.ac.uk
Associate Professor

Abstract

This paper examines the significance of the directors’ and officers’ (D&O) insurance policies in the UK. It argues that the significance of D&O policies lies in D&O policies being commercial than legal tools for directors. When third parties sue a director, unless the director assumes personal responsibility (where this assumption is an element of the civil wrong), English law does not impose personal liability against the director, and a D&O policy, as a legal tool, may not respond. Moreover, as a legal tool, it may not be necessary, as defence costs can be provided to directors under company indemnity. As commercial tools, D&O policies provide directors with defence and investigation costs, and in criminal cases defence costs until the final judgment or admission of dishonest conduct. Moreover, as a commercial tool, unlike under company indemnity where directors would repay defence costs if unsuccessful, defence costs will usually be covered off by a D&O policy in the event of a negative judgment.

Citation

Mukwiri, J. (2017). Directors’ and Officers’ Insurance in the UK. European Business Law Review, 28(4), 547-573

Journal Article Type	Article
Acceptance Date	Apr 27, 2017
Online Publication Date	Sep 28, 2017
Publication Date	Aug 1, 2017
Deposit Date	May 17, 2017
Publicly Available Date	Nov 30, 2017
Journal	European Business Law Review
Print ISSN	0959-6941
Publisher	Kluwer Law International
Peer Reviewed	Peer Reviewed
Volume	28
Issue	4
Pages	547-573
Publisher URL	http://www.kluwerlawonline.com/abstract.php?area=Journals&id=EULR2017027