Director’s & Officer’s Liability Insurance
This Insurance protects the company Directors, Officers and Senior Managers against claims arising from their decisions and actions taken whilst managing the business.
Directors are the ‘mind and will’ of the Company. They are personally and legally responsible for their own actions with unlimited liability. Following changes to the law, Directors now have a greater personal accountability. There are over 200 statutes under which Directors can face penalties, fines, disqualification and even imprisonment.
A developing blame culture means a rising number of people are resorting to litigation against Directors and Officers. As well as regulatory bodies, the list of potential claimants include your shareholders, employees, customers, suppliers and creditors. The cost of defending an action can be substantial.
Statistics show most employers are more likely to have an employment claim than a property or third party general liability claim. In 2011/12 there were 186,300 Employment Tribunals with average awards per claim as follows: £9,133 for Unfair Dismissals; £9,940 for Sex Discrimination; £102,259 for Racial Discrimination and £22,183 for Disability Discrimination.
We have access to a wide range of insurers who specialise in these products and offer a range of extended or enhanced covers. Cover can be tailored to your requirements, or indeed your budget, with various levels available.
Whilst this insurance has been in existence for many years it is still seen as a relatively new proposition for businesses. Therefore please therefore feel free to discuss this particular insurance with us so that we can provide more information on how you and your business can be better protected.