In our latest brief Thomas Carroll Brokers discuss the reasons why you should consider purchasing Directors’ and Officers’ Liability Insurance
1) Your Personal Liability
People mistakenly believe that as a director of a limited company, there is no link between personal liability and corporate actions. However, personal claims or proceedings against directors or officers can arise from any decision made in the workplace.
2) Protection for Officers
The legal definition of a director is relatively clear whereas the legal definition of an officer is vague. This means proceedings can be issued against people in almost any managerial or supervisory position.
3) Wide range of claims
Typical claims against directors & officers can be from a range of sources and actions. Common claims typically include;
• Dissatisfied customers
• HSE investigations
• Claims by investors and shareholders
• Police and SFO investigations
• Actions lead by liquidators
4) D&O insurance fills the cover gap
Unlike liability policies that provide cover for claims arising from property damage and bodily injury, a D&O policy specifically provides cover for a ‘wrongful’ act such as an actual or alleged error.
5) Benefits to your Business
Whether you are a not-for-profit, privately held or public company, it is likely that your business can benefit from a D&O policy. It is vital to understand that problems can be caused inadvertently by individuals at many levels of an organisation.
To enquire about adding directors’ and officers’ liability cover to your business insurance package, contact your Thomas Carroll account executive or call 02920 887733 to speak to a member of the team.