Directors’ & Officers cover has evolved from protecting just company ‘directors and officers’ to protecting against claims made against the company as well. Importantly, not all directors fully appreciate that whilst a limited company, by definition, has a limited liability, the personal liability of a director is unlimited. A director’s personal assets are at risk for claims made against them if acting outside of their duty to the company.
There are three areas of cover:
Directors’ & Officers Liability provides protection for any claims made against a ‘director or officer’ personally and will cover legal costs, awards and settlements for any claims alleging that a “wrongful act” has been committed. Whilst it may be generally considered that a claim is most likely to arise from a government authority or regulator, in reality claims can be brought by a wide range of potential claimants including, but not limited to; Shareholders, Creditors, Customers, Competitors, Retirement fund beneficiaries or The business itself.
Company Legal Liability provides protection for any claims made against the company or its subsidiaries and will cover legal costs, awards and settlements for any claim or action alleging that a “wrongful act”, has been committed, claimants can arise as stated above.
Employment Practice Liability which provides protection for employment disputes and will cover legal costs, awards and settlements arising from employment disputes and employment tribunals.
As one of the 8 partners of Ethos Broking we have negotiated enhanced policy cover with AXA Insurance to provide even better protection to our clients.
In addition to the comprehensive cover provided by AXA, you will also have access to the Radar Resource Centre which provides access to advice provided by qualified solicitors and documentation to help you manage your business.
When things go wrong in business people look for someone to blame – can you or your business afford not to have this cover?
To find out more speak to your usual Finch Group advisor or email us: enquiries@finchinsurance.co.uk
