What is Directors and Officers Insurance?

D&O Insurance Hong Kong, directors and officers liability insurance, board of directors insurance

Directors and Officers Liability Insurance comes as the protection of personal liabilities for its board members and management staff.

Directors and Officers Liability is most of the time known as D&O Insurance.

As Directors or Officers, you are directly and personally liable for any decision you take for the company. Knowing that there is a large number of third parties that may sue you for your work decision. The lawsuit could arise from your shareholders, employees, government, clients and more…

D&O insurance is the key to protecting company management and letting them focus on their job more without fears for their personal liability.

What is covered?

Directors and Officers Liability Insurance basically can cover:

  • Your defence costs and legal representation expenses
  • Judgements, settlements and bail bond costs
  • Losses incurred for civil fines and penalties
  • Crisis costs
  • Public relation expenses
  • Cost arising from extradition proceedings
  • Tax contribution in case of insolvency of the company while one or more of the insured have personal liability.
  • Reputation protection expenses

What should you know?

Even if the claim is irrelevant and built without solid arguments, you would face defence costs that strongly affect your cash flow. Therefore, a D&O case can be devastating for any company, even if only one member or no one is at fault.

In many SMEs, especially in their foreign branch, we often meet managers who think they have no personal liability as they are not directors. This is a mistake. Any acting officer is liable for his personal decisions during his work. Whether he is a general manager, HR manager, CFO, Factory Manager etc…


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