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directors and officers liability insurance

The dreaded Cyber Attack can force a typical SME (Small and Medium Enterprise) down to its knees, and even extinction within 6 months of the Attack. Almost as a rule, the fall guy is the Director and Officers. Their liability is often out of kilter with their actual financial involvement with the Enterprise under attack, due to ramifications of the Law. Insurance for their liability is therefore a prime area to be covered by the Insurers, to prevent the SME from collapsing, along with its top decision-makers. Covering directors and officers liability insurance is one of the most important areas for Insurance companies.


This mode of insurance concerns the broad cover against director and officer lawsuits, and yet costs a minimal Singapore$500 each year only. Known as D & O Insurance (Directors and Officers Liability Insurance) in Singapore, this is an important protection against the depredations of criminals against a SME. The typical lawsuits are filed by:

  • Disgruntled employees suing the high office-holders of the company under attack.
  • Shareholder lawsuits.
  • Dissatisfied clients who sue the directors and officers after an attack.

Even more sadly, 71% of all lawsuits filed against the company directors for these reasons are won by the plaintiffs. All property, even theprivate properties of the directors and officers who lose such cases are liable to be seized and liquidated to extract the amounts fined by the judicial and statutory authorities. This form of protection, the directors and officers liability insurance is therefore essential.

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About the Author: Dan Brown