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Press Release   •   May 19, 2015 08:30 BST

Two thirds of small and medium business leaders are not aware of what Directors & Officers Insurance is, according to new research by Allianz Insurance.

The poll of 1000 SMEs and Mid Corporate businesses also revealed that more than half of business leaders (54%) said that they did not realise that a company director can be held personally and legally liable for a business decision.

Respondents believed the top three risks which face their business were data security (25%), credit risk (19%) and reputational risks (15%).

When asked specifically about reputational risks, those surveyed said that their biggest concerns were:

  • A wrongful act by senior management or director (36%)
  • Making a decision which loses money for a client's business (32%)
  • Employment practice claims against senior management or a director (27%)

Allianz Insurance has released a new white paper in partnership with international law firm, DAC Beachcroft, called ‘Tough at the Top – Protecting your Key People’, to explain the risks faced by company Directors and the protection that a Directors & Officers policy can provide.

Stephanie Ogden, speciality lines underwriting account manager, Allianz Commercial, said:

‘Despite the lack of awareness revealed by our research, small and medium businesses face the same risks as their larger peers and often, they have further challenges because they do not have an in-house legal team to help manage a claim or investigation against them.’

She added: ‘With an increasing focus on regulation and litigation in the UK, we believe that Directors and Officers insurance is a must for a business of any size.It provides valuable access to specialist lawyers and consultants, providing companies and their senior executives with the peace of mind that they can make complex business decisions without the fear of financial and reputational consequences.’

Caroline Cherry, associate, DAC Beachcroft, added: ‘Many directors don’t realise that if a fine is levied against them they can’t charge it back to their company and that it will be a personal liability. It is vital to understand the legislation that applies to them in their role as director, and the implications of claims being made against them.’

Allianz launched its Complete Directors & Officers product onto its e-trading platform, QuoteSME in 2014.


Allianz Insurance is one of the largest general insurers in the UK and part of the Allianz SE Group, the largest property and casualty insurer worldwide.

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