Does a D&O policy provide Professional Indemnity cover? (PI)

  • No the policy does not give PI cover.
  • In simple terms, D&O policies are designed to protect individuals when they sued for their poor work. By contrast a PI policy protects the company when the company is sued for poor work.
  • Mostly D&O claims arise out of allegations made by shareholders and creditors. By contrast, PI claims usually arise out of allegations made by the company’s customers.
  • In a way, a D&O policy is a form of ‘personal’ PI policy, where directors are insured against mistakes they make in performing their management duties.
Directors and Officers Liability