What is the difference between Directors and Officers (D & O) Liability insurance and Professional Indemnity (PI) insurance?
D & O insurance covers individual senior officers and others who are involved in the management of an organisation, against claims alleging a breach of their managerial duties, or an act or omission in relation to the discharge of their functions as an officer of the organisation. PI insurance covers an organisation (including the Crown) and its employees against claims alleging a breach of professional duty to a third party, eg. an error in its provision of a specialised service, or negligent performance of a specialised obligation or function. Both D & O and PI policies operate to only cover claims which are first known to the insured person or entity, and notified to the insurer, during the period of cover.
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