Thanks to Allianz Insurance, one of the many insurers we work with, for putting together this great list of reasons why Directors and Officers Insurance is so important.
1. Directors’ personal assets are at risk
2. Investigations by regulators are getting more and more common
Investigations and fines imposed by a regulator or body such as the Health & Safety Executive are one of the primary drivers of claims in the current UK business climate.
3. Defending a legal action can be costly
Legal costs for defending allegations against the company or one of its directors can often run into tens of thousands of pounds.
4. Employment practice claims remain a large threat to directors
5. Your investors can sue you
If investors lose value in their shares as a result of a director or company’s alleged misconduct they could seek compensation via the courts
6. Protection in case of bankruptcy or insolvency
If faced with bankruptcy or insolvency, creditors may pursue legal action against directors if they feel that they have not acted in their best interests.
7. SMEs are just as vulnerable as large companies
8. D&O claims are NOT covered under any other liability policy
A common misconception is that alleged misconduct by directors or companies is covered under other liability policies such as Professional Indemnity.
9. D&O insurance is more affordable than ever
A D&O policy can cost from under £500 per year, yet the total cost of a D&O claim can run into hundreds of thousands, if not millions of pounds.
10. D&O helps attract talent
Not having D&O insurance in place may put off talented individuals from joining a company as they will not be protected.
For more information or to get a no obligation quote visit our Directors and Officers page