Who Needs Directors Insurance?
In 2006, The Companies Act introduced certain duties for Directors of companies. Until this act was introduced, these duties had never been laid out in statute before. They stated that the onus falls solely on the Directors to be aware of their duties meaning that a breach is now more easily identified and can result in claims being made against the Directors themselves. Therefore, if you are a Director of a company, Directors Insurance is essential for protecting your personal assets and your business against claims of negligence of care.
Who Might Make a Claim Against a Director or Officer?
As a Director or Officer you are at risk of having a claim made against you by anyone associated with your business. The most common people to make a complaint include:
- Other Directors
- Nuisance claims
What cover does Directors and Officers Liability Insurance Provide?
At PIC we know that every business is different and therefore every Insurance policy should reflect the differing needs of a company’s directors. A typical policy can be arranged to include cover for:
- Employment practices liability which constitutes a large proportion of claims
- Harassment and Discrimination claims including sexual harassment and racial discrimination
- Legislative Breaches – e.g. Companies Act, Health & Safety Act, Data Protection Act, Insolvency Act to name a few.
- Alleged financial mismanagement of the company
- Disputes arising from mergers and acquisition activity
- Action arising from potentially libellous or slanderous statements made by Directors
- Acting contrary to the company’s Memorandum of Association
How does Directors and Officers Liability Insurance work?
Directors & Officers Insurance works in two parts:
Once a claim has been made with the legal fees established, the insurer will reimburse any director, officer or employee for their liability for any wrongful act.
Secondly, the insurer will reimburse the company where it has had to indemnify a director, officer or employee.
The policy must be taken out by a company on behalf of the individual.
Why Compare Directors and Officers Insurance with Property Insurance Centre?
At Property Insurance Centre, our priority is our customers, so whether you want to apply for quotes online, or speak to one of our experienced, specialist team, we aim to give you the best range of D&O Insurance Quotes.
As a specialist insurance broker, we strive to give our clients the best service with:
Our team are available to talk to online or over the phone and will answer any questions you may have so you have the peace of mind that you and your business is adequately covered.
Call us on 0800 085 3761 or contact us here to get a range of Directors and Officers Liability Insurance Quotes.