There is more and more pressure on company directors and officers in business today as a direct result of corporate scandals and events that has increased scrutiny and vulnerability, particularly when things go wrong.
Leaders of organisations, company directors, managers, supervisors and board members may be held personally liable in such circumstances and could find they need additional protection as a result of a claim, or allegation, from actions they have taken as part of their role.
Facing legal action, even if it isn’t warranted, is not only time-consuming, but it can also affect your businesses’ reputation and have a serious impact on general well-being of the individual, or individuals involved, never mind the costs associated with preparing a legal defence.
That is where Director’s and Officers (D&O) Liability Insurance can help to offset the risk of litigation against your business or key member(s) of your team.
Directors and Officers Insurance, also known as D&O Insurance, provides financial protection for senior members of staff who face allegations of ‘Wrongful Acts’.
The policy can include all active senior members of the company, as well as any previous and future ones, to protect them against any claims that arise from projects that were completed during their term of employment at your company.
Examples of Directors and Officers claims include:
- Accidents at work
- Breach of fiduciary duty
- Defamation
- Discrimination
- Fraud
- Failure to comply
- Health and safety including corporate manslaughter
- Misrepresentation
- Misuse of company assets and funds
- Negligence
- Sexual harassment
- Theft of IP
- Unfair dismissal
- Withholding information
- Wrongful termination
In many companies, Directors’ and Officers’ Insurance is taken out by the company itself as an act of goodwill to protect the leaders of the company. However, there is no obligation for the company to do so and individuals can take out a policy themselves to provide financial protection.
The policy is only applicable if the specified individuals on the policy are being accused of ‘Wrongful Acts’ as individuals. If a stakeholder was to make a claim against your organisation as a whole then this would not be covered by D&O insurance.
Directors and Officers’ Insurance can be enhanced with employment practice liability and corporate legal cover to provide a more thorough cover.
At Pollensa Insurance Services, we can help you put your D&O Insurance in place. We’ll talk you through everything you need to know so you can carry on managing your business with peace of mind. Just call us on 01788 303 111 or email us at enquiries@pollensa-insurance.co.uk
