Directors & Officers Liability Insurance – What is it? Why do we need it?

Directors & Officers Liability Insurance

Directors & Officers Liability Insurance, Management Liability or D&O Cover as it’s more informally referred to is not something that is widely discussed in Ireland amongst property owners or company directors.

Would you be surprised to hear that it is vital for all Multi Unit Developments Owners’ Management Companies (OMC’s) to have Directors & Officers Liability (D&O) Insurance in place due to the provisions of the Multi Unit Developments (MUD) Act of 2011?

Or that in a private company, it can offer cover for the directors and officers of the company against claims that could be made against them for failure to fulfil their regular duties as directors?  Or indeed that the policy is designed to protect the personal wealth of the directors and officers in such circumstances as otherwise their personal wealth is at risk due to the provisions of the Companies Act 2014?


Directors & Officers Liability Insurance is designed to provide cover for the wrongful acts of any directors, officers or managers of the firm or OMC with responsibility for corporate / business decisions or activities e.g. dealing with banks, arranging insurance, handling finance or money, financial reporting, strategy implementation, contract negotiations etc.

Shareholders, other directors, members of the public, can make claims or anyone with a financial interest in the firm(s), and a defendant’s personal wealth is at risk unless protected by the company’s D&O Liability policy.


Cover can also be provided for claims taken against the Company (Corporate Legal Liability or Entity Liability cover) and the legal defence costs incurred on same. These claims are for pure financial losses and are not cover by Public liability insurance. This cover should not necessarily be viewed solely in terms of the likely (or unlikely) award made to a third party but also the likely cost of defending (successfully or not) a case taken against a director personally, which can far exceed any award made.


Directors & Officers Liability Insurance policies can also be extended to provide Employment Practices Liability (EPL) – extended protection for actions taken against you in relation to hiring & firing risks. Another extension option that could be considered for Firms is Pension Trustees Liability (PTL) which offers extended protection for actions taken against entities who act as Trustees for a

Pension Scheme.


For further information regarding Directors’ & Officers Liability Insurance, please click HERE.

Contact S.A. Faughnan (Brokers) Ltd. on 018245555 or at or visit us at