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What Our Plans Cover
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Indemnity paid to directors and of...
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Defence costs advanced on their be...
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Indemnity to employees where the c...
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Nominee directors serving on other...
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Regulatory investigation costs ind...
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Settlements the company funds unde...
Who Can Consider This Plan?
- A registered business, professional practice or organisation
- Activities within the classes the insurer writes
- Accurate disclosure of turnover, activities and territories
- Disclosure of all known circumstances that could give rise to a claim
- Compliance with any statutory licensing applicable to the activity
What May Not Be Covered?
- Indemnity for deliberate dishonesty or fraud, once established
- Indemnity the company is prohibited by law from providing
- Claims known before the policy incepted
- Bodily injury and property damage
- Fines and penalties uninsurable by law
Always check the policy wording before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading insurance companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
Our Insurance Partners
- Star Health Insurance
- Care Health Insurance
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We represent multiple providers to help you find the most suitable option at the best price.
- Expert Guidance Personalised advice from experienced insurance professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
Company indemnity cover responds where a company has an obligation — usually under its articles of association or an employment contract — to indemnify directors, officers or employees against claims arising from their work.
That obligation is real and often overlooked. Articles commonly require the company to defend and indemnify officers acting in good faith, and employment contracts frequently extend similar protection to senior staff. Without insurance, the company funds that obligation from its own balance sheet.
In practice this sits alongside directors and officers cover as the Side B component, reimbursing the company for indemnification it has actually provided. Where a company has given contractual indemnities beyond the standard, a specific policy may be needed.
Who should consider it
Companies whose articles contain an indemnity clause — which is most of them. Companies that have given contractual indemnities to senior employees or to nominee directors on subsidiary boards.
Benefits
- Reimburses the company for indemnity it is obliged to provide
- Protects the balance sheet from an obligation already committed
- Covers defence costs advanced to officers and employees
- Extends to nominee directors on subsidiary and joint venture boards
- Complements directors and officers cover as its Side B component
- Provides certainty around an obligation most boards have not quantified
What is covered, and what is not
Read the right-hand column first. It is the one that decides whether a claim is paid.
Typically covered
- Indemnity paid to directors and officers for covered claims
- Defence costs advanced on their behalf
- Indemnity to employees where the company is contractually obliged
- Nominee directors serving on other boards at the company's request
- Regulatory investigation costs indemnified by the company
- Settlements the company funds under its indemnity obligation
Typically not covered
- Indemnity for deliberate dishonesty or fraud, once established
- Indemnity the company is prohibited by law from providing
- Claims known before the policy incepted
- Bodily injury and property damage
- Fines and penalties uninsurable by law
- Indemnity beyond what the articles or contract actually require
Inclusions and exclusions vary between providers and between plans from the same provider. The wording in your own policy document is what governs — we will walk you through it before you buy.
How it works with us
- 1 We map the exposure before choosing a policy What you do, who it touches, and where a claim would come from. Liability cover follows the exposure, not the industry label.
- 2 Trigger and retroactive date agreed first Occurrence or claims-made, and how far back the cover reaches. These decide more than the limit does.
- 3 Limits tested against a realistic worst case Not the average claim — the one that would matter. Defence costs are part of that calculation.
- 4 Underwriting and, for larger risks, a survey Insurers price liability on process and controls. Good documentation genuinely lowers the premium.
- 5 Policy issued, and notification process explained Late notification is the leading cause of declined liability claims. We make sure your team knows when to call.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Read your own articles before setting the limit. Most boards have never quantified the indemnity they have already promised.
- Where limits are shared with the D&O programme, a single large matter can exhaust both. Consider whether Side A needs a dedicated limit of its own.
- Nominee directors on subsidiary or joint venture boards are frequently indemnified by the parent. Confirm they are within the cover.
- Indemnity the law prohibits cannot be insured. Certain liabilities under the Companies Act cannot be indemnified at all, and the policy follows that position.
- Arrange run-off on a sale or winding up. The obligation to former officers survives the transaction even when the company does not.
Documents required
- Business registration and constitution documents
- Description of activities, products or services
- Annual turnover and, where relevant, export turnover
- Number of employees and details of contractors engaged
- Claims and incident history, usually for five years
- Existing policy schedules, where cover is being replaced
- Contracts specifying required indemnity limits, where applicable
Frequently Asked Questions
How is this different from D&O cover?
D&O protects the individuals; this reimburses the company for indemnity it provides to them. In most programmes they are the same policy, with this operating as the Side B layer. Where a company has given indemnities beyond the standard, a separate arrangement may be needed.
Do our articles really oblige us to indemnify directors?
Most articles contain such a clause, typically covering officers acting in good faith. Boards frequently have not read it since incorporation and have never quantified the exposure. It is worth checking before assuming there is nothing to insure.
Does it cover employees as well as directors?
Where the company is contractually obliged to indemnify them — which is common for senior employees and for anyone serving on an outside board at the company's request.
Can the company indemnify a director for anything?
No. Certain liabilities cannot lawfully be indemnified, and the policy follows that position. Where indemnity is prohibited, only the director's own Side A cover responds.
Should the limit be shared with D&O?
It usually is, which means a single large matter can exhaust the whole programme. Where directors are particularly exposed, a dedicated Side A limit that cannot be eroded by company reimbursement is worth pricing.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.