Directors & Officers Insurance

Directors and Officers Insurance will cover any civil or criminal offences, including any legal defence costs and awards.

In addition, not only is cover available for all directors and officers of the company but it also extends to include managers and key employees.

You will be aware that current law states that if an individual of a company is sued directly then, in some circumstances, he or she is forbidden from having the defence costs or claim awards paid by the company.

To summarise, without Directors & Officers Insurance, directors' homes and personal possessions are at risk.

The Companies Act contains seven statutory duties of directors:

• A duty to exercise reasonable care, skill and diligence

• A duty to promote the success of the company

• A duty to act within powers

• A duty to exercise independent judgment

• A duty to avoid conflicts of interest

• A duty not to accept benefits from third parties

• A duty to declare any interest in a proposed transaction or arrangement

Directors & Officers Insurance is designed to cover Private Companies domiciled in the UK, Non-profit organisations in the UK and Resident's Management Companies.

The cover will include key areas such as:

• Financial mismanagement

• Breaches of Company Law

• Breaches of Tax Law

• Employment issues

• Breaches of Environmental Law

Personal Liability

A common misconception is that directors of limited liability companies can hide behind the veil of incorporation. This is not the case - directors' personal liabilities are unlimited and in the course of carrying out everyday duties for a company, directors are exposing themselves personally to lawsuits, investigations and criminal prosecutions.

Criminal Liability

Directors could go to prison for their actions, inaction or ignorance.

What Is Director Disqualification and How Can It Impact You?

Since 1993, director disqualification cases have risen by over 400%, with a growing focus on smaller businesses. Even without allegations of wrongdoing, directors need sufficient legal support to achieve the best outcomes.

In the year leading up to March 2007, 1,200 directors were disqualified. Disqualification bars individuals from holding management roles for 2 to 15 years. Beyond the ban, it can severely damage personal reputations and credit histories, with long-lasting effects.

In the event of a claim, your dedicated account handler will take the lead, ensuring a seamless experience and prompt attention from the insurer.