Directors and Officers Liability

 An all too common feature of todays litigation aware society is the increasing trend of personal litigation towards Directors and Managers of private companies which can prove expensive to both the Company and the Individuals involved. Now the consequences of decisions made in good faith can be extremely costly. The Government has seen fit to make examples of decision makers within companies and a survey, even in 1999, noted a 35% increase in the number of Directors being prosecuted. This trend has not abated. You are now open to litigation by Regulators, Customers, Suppliers, Creditors, Employees and more and more Co-Directors.

Fortunately help is at hand and we can provide you with insurance to fend off many of the claims that could be made against you and your fellow officers of the business. We can cover :-

  Directors and Officers liability claims made for actual or alleged acts.
  Cover for non-executive Directors for not for profit organisation s
  Run-off cover for directors and officers following a sale or takeover
  Cover for subsidiaries of your main company
  Payment of defence costs.

Example

<1>In 1997 a driver fell asleep whilst driving for a haulage company. Two motorists were killed. The court ruled that the operations manager should have ensured that his driver adhered to the relevant driving regulations. He had also failed to keep in close touch on these matters with his co-director. Both directors incurred substantial defence costs before being convicted of corporate manslaughter.