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INSURANCE PRODUCTSDirectors & Officers Insurance
Society is developing an increasingly litigious attitude. In addition, there is now more pressure on companies to provide better working environments, demonstrating a 'duty of care' at all times. Regulation is placing greater pressure on company directors and officers to perform meticulously.
If a shareholder, employee or any other 3rd party thinks a director or officer has failed to exercise 'due care' in the running of a business, a claim can now be made against them personally. With litigation escalating, Director's Liability Insurance provides essential financial protection for directors and officers.
Directors and Officers Liability 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 Liability Insurance, directors' homes and personal possessions are at risk.
The Companies Act contains seven statutory duties of directors:
Directors & Officers Liability 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:
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.
Directors could go to prison for their actions, inaction or ignorance.
Since 1993, actions against directors by the Department of Trade and Industry (DTI) have increased by over 400% - with an increasing focus on smaller businesses. Even when there is no initial allegation that a director has done wrong, having the funds to obtain legal representation enables directors to gain the best possible outcome.
A total of 1200 directors were disqualified in the year to March 2007. Disqualification stops directors working in any management job with orders ranging from 2 to 15 years. But the problems don't end there, even after the ban credit histories and personal reputations can be permanently damaged.
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Our passion, integrity and knowledge are key to maintaining long-standing relationships. We work hard to ensure everything in our power is completed to the highest standard accompanied by the finest level of care.
Our asbestos insurance seemed a complex risk, however, our account manager at Grove & Dean Corporate, provided face-to-face meetings and the knowledge that our business is adequately protected.
For years we have built a valued business relationship with Grove & Dean and believe their personal approach is above and beyond.
Pier Contractors Limited
I feel confident that both our company fleet and commercial combined insurance is in the right hands at Grove & Dean. The Corporate team are knowledgeable and display genuine integrity.
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