Directors and Officers Liability Insurance

YOU ARE AT RISK PERSONALLY

To protect your company and your livelihood you should put this important Directors and Officers liability insurance.

It will provide you with protection and peace-of-mind against personal financial loss associated with claims of negligence or breach of responsibilities.

This is vital as legal actions can be brought from a wide range of parties including shareholders, creditors, employees, contractors, regulatory authorities and the company itself.

PROTECT YOURSELF WITH DIRECTORS AND OFFICERS LIABILITY INSURANCE

Even if you work for a small or medium sized business you still need Directors and Officers liability insurance cover.

In fact, it is often considered easier to instigate legal action against smaller businesses, as larger organisations often have more people involved in decision-making, making legal action more complicated.

Despite this, research suggests that only around 20% of SME’s consider Directors and Officers liability insurance cover.

The two main reasons for this are:

•  Misunderstanding
• The belief that well runs companies do not get sued.

REASONS FOR DIRECTORS AND OFFICERS LIABILITY INSURANCE COVER

There are, however, some very important reasons for having Directors and Officers liability insurance cover in place.

For Example:

• Even though a company’s liability is limited, a Director’s liability isn’t, so you personally could lose everything
• Directors can be disqualified for up to 15 years or more
• A company may be prohibited from indemnifying its Directors and Officers
• Directors and Officers liability insurance cover can cost a relatively small amount for a great deal of cover

LOW MINIMUM PREMIUMS

At Greenfield Insurance Services our minimum premiums are lower than those of many brokers, starting at just £150+ IPT per annum.

9 QUESTIONS TO ASK YOURSELF

Before considering Directors and Officers liability insurance, you may wish to evaluate the likelihood and potential damage resulting in a claim, For example:

1.  Who will be sued?
2. Why might they be sued?
3. Who will sue them?
4. What are the risks?
5. How likely is a lawsuit?
6. How much can lawsuits cost?
7. What is the possibility that the company is sued rather than its Directors?
8. Does existing insurance cover these types or claim?
9. How does Directors and Officers liability insurance cover protect you?

LET GREENFIELD INSURANCE SERVICES ADVISE YOU ON DIRECTORS AND OFFICERS LIABILITY INSURANCE

Greenfield Insurance Services has experience of advising businesses and individuals on types of Directors and Officers liability insurance cover and we are happy to discuss these questions with you.

We can help you gain a full picture of the risks involved and which specific type of Directors and Officers liability insurance you may need.

CLAIMS EXAMPLES:

A Director was sued by a collection of shareholders for negligence after the company’s assets declined. After consultation with a lawyer, the decision was to settle our of court. Directors and Officers liability insurance funded the final settlement as well as the legal costs. The sums involved would have been sufficient to personally bankrupt the director.

A Director was taken to court following claims of wrongful dismissal of an employee. This resulted in an employment tribunal, which is a full scale legal hearing often lasting for months. In this case, the director was found guilty and had to pay damages. Directors and Officers liability insurance covered both the legal costs and damages.

If you wish to discuss your directors and officers liability insurance please either phone us on 01489 579808 or complete our online enquiry form