Why D&O Insurance Is a Must for Anyone in a Position of Trust

If you're offering nominee director or family office services, this one’s for you.

Running a professional service firm—especially one that helps manage companies, trusts, or family office structures—means stepping into positions of responsibility. Sometimes, that even includes acting as a director or helping run someone else's business. And let’s be real—things can go wrong.

Directors & Officers (D&O) Liability Insurance helps protect you when they do.

Let’s break down why it matters.

1. You Can Be Held Personally Liable

If you're acting as a nominee director or providing executive-level services, you're legally on the hook for decisions made under your name—even if someone else is calling the shots. Under Singapore’s Companies Act, directors must act in good faith and in the company’s best interest. If not, they can be sued or investigated.

This means:

• Shareholders can sue you

• Regulators like ACRA or MAS can investigate you

• You may have to pay legal fees out of your own pocket

D&O insurance is no longer optional—it’s a key part of protecting your business and keeping things running smoothly.

2. Investigations Happen—Even If You Didn’t Do Anything Wrong

You don’t need to be guilty to get caught in a mess. Regulators often start investigations just to “take a look,” and that can still cost you time, money, and reputation.

Some of the better D&O policies (like AIG or Allianz) will pay for:

• Lawyer fees

• Costs to prepare documents

• PR help if your name hits the headlines

Even if nothing comes of it, you’ll be glad you had the cover.

3. Nominee = Director (In the Eyes of the Law)

Courts in Singapore and other countries have made it clear: if your name is on the board, you have duties. You can't say, "I'm just a placeholder." You're expected to ask questions, check what’s going on, and act when needed.

Good D&O policies will cover nominee, shadow, and even informal directors.

4. You’re Working Across Borders—That Means Extra Risk

Many service providers work with clients who have companies or trusts overseas. That’s great—but it also means you’re exposed to laws in other countries. The U.S. in particular is known for class-action lawsuits and aggressive claims.

Some insurers (like Liberty or Chubb) offer D&O policies that include worldwide coverage, so if something happens in Hong Kong, the U.S., or the UK, you’re still protected.

5. You’re Trusted With People’s Legacies—Don’t Risk It

When clients put you in charge of their business, wealth, or legacy, they’re trusting you with more than just paperwork. They expect you to help protect their interests and avoid problems. That’s a lot of responsibility.

If something goes wrong—whether it's a simple mistake or a full-blown lawsuit—D&O insurance helps you deal with it without risking your own money or your firm’s reputation.

What Should You Look For in a Policy?

If you're in this space, make sure your D&O insurance includes:

✅ Cover for nominee and shadow directors

✅ Legal fees for investigations, not just lawsuits 

✅ Claims from shareholders, regulators, or even employees 

✅ Extra protection for non-executive directors (if relevant) 

✅ Global cover, especially if your clients have overseas structures 

✅ PR and reputation repair costs

Some policies, like Allianz’s pre-underwritten D&O for SMEs, offer simple applications and fixed pricing if your company meets their criteria. Bigger firms or those with complex work might need a custom policy.

Final Word

If your business provides high-trust services—like acting as a nominee director or helping manage family wealth—you’re exposed to risk whether you realise it or not.

D&O insurance is about peace of mind. It’s there to protect your personal assets, your firm’s reputation, and your ability to keep doing what you do best.

If you’re not already covered, now’s a good time to take a closer look.

Author : Lionel Ling

If you would like a comprehensive discussion, get in touch with us here.