At your company’s request, you sit on the board of a charity partner. A grant decision is challenged and you are named in the claim because you were a director there. You need support to deal with the allegation.

Outside directorship insurance may help if you are sued for actions in a board role you took on at the company’s written request.

A regulator sends a formal notice asking a director to attend an interview and produce documents about the company’s governance. It is not a routine check. You hire legal advice to prepare, attend and manage the process.

D&O is designed to cover investigation costs when a regulator formally requires your attendance or documents, if you notify the insurer in time.

Your company gives a lender and investors a rosy update to secure funding. Later, results fall short and they allege the director made a misleading statement and demand settlement or compensation. Legal costs start piling up fast.

If a claim says a director made a misstatement or misleading statement, D&O can help with defence costs and some covered loss.

A minority shareholder says the board made a careless decision that hurt the business. They sue a director personally for a breach of duty and ask for damages. You need a lawyer to respond and defend the claim.

D&O can help pay defence costs and any covered settlement or damages when a claim alleges a wrongful act, like a breach of duty.

Before you buy cover, the board gets a lawyer letter warning of a likely shareholder claim about a past capital raise. It is not notified. Months later the shareholder sues over the same facts and you lodge a D&O claim.

Claims linked to known facts, or prior and pending proceedings, are commonly excluded when they started or were known before cover began.

A client says your firm gave the wrong advice and they lost money. They sue you and name you as a director, but the complaint is about the paid professional service delivered to the client. You submit it as a D&O claim.

D&O targets management decisions. Claims arising from providing professional services or advice for a fee are usually excluded.

The company cannot pay suppliers and enters voluntary administration. A creditor sues the directors alleging insolvent trading and seeks repayment of the unpaid invoices. You try to claim under D&O for the debt and defence costs.

Most wordings exclude claims tied to insolvency, liquidation, bankruptcy or administration. Cover may apply only if an extension does.

A director approves expense claims that hide personal spending. The company later discovers it and a lawsuit alleges dishonest conduct and personal gain. You ask the insurer to cover the defence and any repayment demanded.

D&O usually excludes dishonest, fraudulent or criminal acts and personal profit, once proven or admitted by a final decision.