There is some mystery and misunderstanding about Directors & Officers insurance. If you run a limited company, a plc or a partnership it is worth considering.
As a senior person in a company or partnership here are 10 reasons to consider having D&O cover.
1. Personal Liability – if you are accused of breaching your duty in the running of a company, you may be personally liable to defend claims brought against you. Personal assets could be at risk if your company does not indemnify you.
2. SME’s – Small businesses may have less stakeholders but they face the same exposures as large corporate companies – often without in-house legal teams or HR to guide them.
3. Defence Costs – If a claim is made against you then you will need to invest in legal defence costs and experts. Directors & Officers insurance will cover this.
4. Health and Safety Prosecutions – certain sectors face the risk of a health and safety investigation if actions are found in breach of safety regulations. A Directors & Officers policy will cover health and safety investigations.
5. Investigations by Regulatory Bodies – Investigations carried out by regulatory bodies leading to expensive defence costs are not uncommon. Directors & Officers will cover the costs of this.
6. Public Relations Costs – An alleged or actual wrongdoing can damage a company’s reputation. Many Directors & Officers covers will pay reasonable fees for a Public Relations consultancy to help limit this.
7. Cover for Each Director – Many Directors & Officers policies will cover directors sitting on other company boards or as acting as an officer for a charity
8. Employment Practice Claims – If an employee brings a claim against a company, Directors & Officers will manage the claim, cover defence costs and any award.
9. Restrictive covenant – Some policies cover the cost of pursuing ex-employees who have breached their restrictive covenant, or defending your own staff from such accusations.
10. Data breach cover – some will cover the costs in defending directors against a data breach.
If you want to discuss this product with us further, feel free to contact us.
You can give us a call on 03333 448 535 or email us at info@custodianinsurance.co.uk.
