Protect Directors and Senior Management

Directors & Officers Liability Insurance helps protect eligible directors and officers against claims arising from alleged wrongful acts while performing their management duties.

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Directors and Officers Liability Insurance in the UAE

Directors and Officers Liability Insurance, commonly known as D&O Insurance, helps protect eligible directors, officers and senior executives against claims arising from alleged wrongful acts committed while performing their management duties.

Business leaders are responsible for important decisions involving employees, customers, shareholders, regulators, investors and other stakeholders. If those decisions result in allegations of negligence, breach of duty, misstatement or other covered wrongful acts, a claim may be made personally against a director or officer.

D&O Insurance may help with eligible defence costs, settlements and compensation, subject to the issued policy terms, conditions, limits, deductibles and exclusions.

What Is Directors and Officers Liability Insurance?

Directors and Officers Liability Insurance is a form of management liability insurance designed to protect eligible individuals serving as directors, officers or senior managers of an organisation.

Coverage may respond when an insured person faces an eligible claim alleging that a decision, statement, omission or failure in the performance of their management responsibilities caused financial loss or another covered consequence.

What May D&O Insurance Cover?

Depending on the issued policy, Directors and Officers Liability Insurance may provide protection for eligible claims involving:

Alleged breach of duty
Negligent management decisions
Errors or omissions
Misstatements or misleading statements
Approved legal defence costs
Eligible settlements or compensation

The exact scope of protection depends on the policy wording and the circumstances of each claim.

Who May Need Directors and Officers Insurance?

D&O Insurance may be relevant for organisations whose directors and senior management make important strategic, financial or operational decisions.

Company Directors
Board Members
Chief Executives and Senior Executives
Company Officers
Eligible Senior Managers
Private and Public Companies

Why Do UAE Businesses Consider D&O Insurance?

Directors and officers may face claims from shareholders, employees, customers, competitors, regulators or other parties in connection with the way an organisation is managed.

D&O Insurance can help businesses manage this exposure by providing financial protection for eligible claims against insured directors and officers, helping protect both individuals and the organisation against potentially significant legal costs.

Examples of D&O Liability Claims

Depending on the policy and circumstances, allegations may relate to:

  1. Breach of Duty: Allegations that a director or officer failed to properly perform their responsibilities to the organisation or its stakeholders.
  2. Management Decisions: Claims alleging that a management decision caused financial loss.
  3. Misrepresentation: Allegations involving inaccurate or misleading statements made in the course of management duties.
  4. Employment-Related Decisions: Certain management-related employment allegations may be considered where expressly covered by the policy.
  5. Regulatory Matters: Certain investigation or defence costs may be considered where specifically included in the issued policy.

D&O Insurance vs Professional Indemnity Insurance

Directors and Officers Liability Insurance generally protects eligible directors and senior executives against claims arising from their management decisions and responsibilities.

Professional Indemnity Insurance generally protects professionals and businesses against eligible claims arising from professional advice, designs, consultancy, errors or omissions.

Some businesses may require both types of insurance because management risks and professional-service risks are different.

Learn more about Professional Indemnity Insurance .

What Is Commonly Not Covered?

Exclusions vary according to the issued policy. Common examples may include:

Fraudulent or dishonest acts
Intentional illegal conduct
Claims or circumstances known before policy inception
Certain personal profit or financial benefit obtained improperly
Claims outside the agreed territorial or jurisdictional limits
Other exclusions stated in the policy wording

Documents Required for D&O Insurance

Requirements may vary depending on the organisation. Information requested for a quotation may include:

Trade licence and company information
Company ownership and management details
Latest financial information
Details of directors and officers
Requested limit of liability
Previous insurance and claims history

Why Choose Al Buhaira for D&O Insurance?

Al Buhaira provides liability insurance solutions for eligible UAE businesses. Directors and Officers Liability Insurance enquiries can be reviewed based on the organisation's activities, management structure, financial information, requested limits and individual risk requirements.

Directors and Officers Liability Insurance for eligible UAE businesses
Coverage based on individual management liability exposures
Different liability limits based on business requirements
Part of Al Buhaira's wider business liability insurance solutions

Frequently Asked Questions About D&O Insurance

Ans: Directors and Officers Liability Insurance, also known as D&O Insurance, may protect eligible directors and officers against claims arising from alleged wrongful acts committed while performing their management duties, subject to the policy terms and conditions.
Ans: Depending on the issued policy, eligible directors, officers and certain senior managers may be covered while performing their management responsibilities.
Ans: Depending on the policy, coverage may include eligible claims involving breach of duty, negligence, errors, omissions, misstatements, legal defence costs and certain settlements or compensation.
Ans: D&O Insurance is not universally mandatory for every UAE company. However, some organisations may require it because of corporate governance, contractual, investor or risk-management requirements.
Ans: D&O Insurance generally relates to claims arising from management decisions and responsibilities, while Professional Indemnity Insurance generally relates to professional advice, services, errors or omissions.
Ans: Premiums may depend on factors such as the type and size of the organisation, business activities, financial position, management structure, claims history, territorial exposure and the requested limit of liability.
Ans: Businesses can submit their information through Al Buhaira's Liability Insurance quotation page for review based on their management liability requirements.
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