Directors and Officers
Rising regulation and an increasingly litigious society means that you, fellow directors and senior managers face an ever-growing exposure to claims.
Whilst the liability of a company is limited, the liability of a director is not so your personal assets are at risk including your home, car, etc
These types of claims can be expensive and time consuming and, even if you are innocent, the costs of just defending a claim against you can be substantial. The potential personal cost to you, an individual director or senior manager of your company are significant, not to mention the associated costs of reputational damage.
You don’t have to be a Director for a claim to be made against you either. An action can be brought against any officer within a company
What cover can a Directors & Officers policy offer?
Directors & Officers Liability (covers the directors against actions against them personally) – we now advise a minimum limit of £1m although lower limits are available.
The total value of your assets must be covered when considering the indemnity limit required.
Corporate legal liability – provides cover for the corporate body and (generally) follows the same limits as that provided by the Directors & Officers Liability.
Employment practices liability (covers the company & employees in relation to all employment related actions).
As you are aware employment law is constantly evolving and is a complex area. Keeping up with legislation relating to the various aspects of employment law is time consuming and many businesses do not have the resources to do this.
Real Claims examples:
Unfair dismissal – £16,000 awarded and £9,875 costs = £25,875
Environment agency prosecution defence costs – £11,076
Environmental Health and Safety at work prosecution defence costs – £5,950
Ex-Directors defence against employer – awarded to directors £13,500 plus cost of defence which exceeded £100,000