Romford: Are you a Company Director or Officer?
If you are, then you could be held liable personally for a range of issues that could cost tens of thousands - and your current Insurance arrangements may not cover this because....
...when faced with certain legal actions against themselves as individuals, Directors and Officers of a company are not protected by Professional Indemnity, Public or Employers Liability Insurance.
Watch our video on Director & Officers Insurance
Directors and Officers Insurance
We're an award winning firm of Insurance Brokers, helping company Directors from all over the UK protect themselves and their personal Assets with Directors and Officers Insurance.
We believe every Company Director or Officer should know about and have this cover - so many don't even know about it because their provider just doesn't talk about it!
We live in an increasingly litigious society, and it has never been more important for Company Directors to protect themselves personally with Directors and Officers Insurance.
Directors and Officers (management etc) regularly face scrutiny from almost every direction, with Shareholders, employees and other stakeholders all relying on them to act in the best interests of the company and comply with their statutory duties.
Despite this, the majority of UK directors and company officers may not have adequate Directors and Officers Insurance in place.
What is Directors and Officers Insurance?
Protect your personal assets
Directors and Officers Insurance is a vital part of a company's Insurance programme, usually arranged under a separate specialist policy.
First and foremost, it will cover your personal wealth for defence costs incurred during a claim and awards made against you. This could be following a civil or criminal offence.
Claims example
Mismanagement - a director of a sporting goods group faced a claim from his former employer after allegations that he had acted in breach of his duties as a director in running the business.
Costs in successfully defending the director were more than £30,000.
What else does Directors and Officers Insurance cover?
There are several key Insurers in the Directors and Officers Insurance market, and each policy has a slightly different wording.
Typically, Directors and Officers Insurance can be broken down into the following three areas:
Directors’ And Officers’ Liability
This covers your personal wealth for defence costs incurred during a claim and awards made against you.
For example:
- claims by investors or other shareholders (including other directors)
- defence costs and awards of claims arising from your personal involvement with the administration of any company pension
Employment Practice Liability
This cover is essential for any employer but is not always provided as standard. It covers your company and your employees against defence costs and awards of employment claims arising.
For example:
- from allegations of sexual harassment or wrongful dismissal by employees
- from allegations of incorrect selection for redundancy
Corporate Legal Liability
This covers your company against defence costs and awards associated with certain events.
For example:
- allegations you have breached regulations, for example Tax, Health & Safety or Trading Standards
- claims by investors or shareholders
- direct financial loss from employee dishonesty
Claims Example
Tax - the directors of a property investment company were prosecuted by HM Revenue & Customs for allegedly making false statements in an earlier tax investigation.
Legal fees in the case came to more than £50,000.
Claims Example
Unfair Dismissal - An IT consultancy faced a claim from a former employee who had been made redundant. The employee claimed he should not have been selected for redundancy as he had taken a salary sacrifice in the last year.
The legal fees in successfully defending the case were more than £8,500.
Claims Example
Pensions Error - an employee of a management consultancy group made a claim alleging that the company had not added her to the group’s pension scheme as instructed a number of years earlier.
The company were held liable and were required to pay £20,000 to compensate for her loss.
Directors’ And Officers’ Liability
This covers your personal wealth for defence costs incurred during a claim and awards made against you.
For example:
- claims by investors or other shareholders (including other directors)
- defence costs and awards of claims arising from your personal involvement with the administration of any company pension
Claims Example
Tax - the directors of a property investment company were prosecuted by HM Revenue & Customs for allegedly making false statements in an earlier tax investigation.
Legal fees in the case came to more than £50,000.
Employment Practice Liability
This cover is essential for any employer but is not always provided as standard. It covers your company and your employees against defence costs and awards of employment claims arising.
For example:
- from allegations of sexual harassment or wrongful dismissal by employees
- from allegations of incorrect selection for redundancy
Claims Example
Unfair Dismissal - An IT consultancy faced a claim from a former employee who had been made redundant. The employee claimed he should not have been selected for redundancy as he had taken a salary sacrifice in the last year.
The legal fees in successfully defending the case were more than £8,500.
Corporate Legal Liability
This covers your company against defence costs and awards associated with certain events.
For example:
- allegations you have breached regulations, for example Tax, Health & Safety or Trading Standards
- claims by investors or shareholders
- direct financial loss from employee dishonesty
Claims Example
Pensions Error - an employee of a management consultancy group made a claim alleging that the company had not added her to the group’s pension scheme as instructed a number of years earlier.
The company were held liable and were required to pay £20,000 to compensate for her loss.
What our Clients Say;
I used Evans Insurance for some personal cover and was impressed, I then used them for my company insurance. Not only did they give a better price, but their levels of customer service are second to none!
Dan provides a fast and professional service and has helped a number of our clients to find the right Directors and Officers insurance or Legal Defence cover at a competitive price. I highly recommend Dan for any of your insurance needs and look forward to continuing to partner with Evans Insurance moving forward.
Due to the nature of our business we needed some expert help to find the right Liability Insurance cover. Daniel provided excellent service.
Protect yourself with Directors and Officers Insurance today
As specialists in Business Insurance, we have a wealth of experience in Directors and Officers Liability Insurance.
In most cases you can get your quote and be on cover the same day of you contacting us.
We can also help you spread the cost of your cover over by Direct Debit
Complete this short form to get a quote