Directors' and officers' liability protects directors, officers, managerial and supervisory employees against claims arising from their actions and the decisions they make on behalf of their company. It also reimburses them for the often considerable legal costs that they might incur in defending a claim.

Many people don't realise that every director, senior company executive and manager is a potential target for litigation, whether from shareholders, bankers, creditors, employees, customers, regulators or liquidators. The financial implications of a legal action can be disastrous. Without insurance, directors and officers are effectively risking their own personal wealth, perhaps putting their homes on the line.

Directors face unlimited personal liability in the following areas:

  • Failure to implement Health & Safety.
  • Wrongful termination of employment or discrimination in the work place.
  • Mismanagement or poor financial performance alleged by shareholders or venture capitalists.
  • Offences under the Data Protection Act, the Companies Acts, the Insolvency Act and over 300 additional statutes/directives.
  • Disputes over mergers, acquisitions and disposals.
  • Public statements, including allegations of libel and slander.
  • Acting beyond authority or contrary to the company’s Memorandum and Articles of Association.
  • The disposal of harmful substances or pollutants.

The policy also covers the legal liability of the directors and officers for matters such as breach of trust, breach of duty, breach of contract, neglect, omission, misstatement, misleading statement, breach of warranty of authority and wrongful trading.

To find out more, call us on 01625 505870 or email us here