Directors and Officers Liability Insurance
Directors and officers liability insurance from Hensure Business Solutions provides you with financial protection and peace of mind should a claim be made against you.
The directors and officers from a company are in a position of responsibility. Directors, managers and supervisors can face allegations and claims for which they may be held personally liable. Directors and officers liability insurance is paramount as unfortunately even in a limited company, directors and officers cannot hide behind the veil of incorporation and their personal liability is unlimited.
In our increasingly litigious society it is becoming more and more common for allegations of wrongful acts to be made against directors and officers. These allegations would need to be investigated and defended and this can cost a significant amount even if the case doesn’t ever make it to court.
Directors and officers liability insurance covers costs associated with the defence of an allegation of a wrongful act. A wrongful act could be a breach of trust, breach of duty, neglect, error, misleading statement or wrongful trading to name a few examples.
Claims can come from a variety of sources including:
- Employees could bring claims for unfair dismissal or discrimination.
- Directors and officers need to ensure that they keep up with current legislation and do not breach any European legislation.
- Disgruntled creditors may look to pursue the directors of the company for trading whilst insolvent.
Any claim needs to be taken seriously and need to be strongly defended as directors and officers can face:
- Civil proceedings leading to large fines or an award for damages or an injunction.
- Criminal prosecution leading to fines and even a prison sentence.
Directors, manager and supervisors can face allegations and claims for which they may be held personally liable.
Covers the costs associated with the defence of an allegation of a wrongful act.