Top 10 reasons to buy Directors and Officers cover
‘Im never going to be in a position where the business could be sued by an employee or a stakeholder’.
Just one of the many responses we hear from clients when considering the requirement for Directors and Officers Liability insurance.
Here is our Top 10 reasons to buy Directors and Officers Liability Insurance :
- Directors personal assets are at risk if they are accused of breaching their duties, if the company does not have in place adequate Directors and Officers Liability insurance.
- Investigations by regulators are increasing and fines imposed by regulators, such as the Health and Safety Executive are becoming more common.
- Defending a legal action can be costly and run into tens of thousands of pounds.
- Employment practice claims, e.g sexual harassment, wrongful dismissal can result in enormous settlements, a risk for any director.
- SMEs are just as vulnerable as large companies. The risks and regulations are the same and with all small business they don’t have the benefit of Legal and HR departments to assist.
- Directors and Officers Liability claims are not covered under any other liability policy.
- Business investors can sue if the value of their shares lose value as a result of a directors or company’s alleged misconduct.
- Directors and Officers Liability insurance is not as expensive as you think. Policies can be arranged for under £500.
- Creditors may pursue legal action against a director in the case of bankruptcy or insolvency if it is found that they have not acted in the best interests on the company.
- During the recruitment process talented individuals may be hesitant in joining the company if there is no evidence of Directors and Officers Liability in place.
If you are interested in receiving further information or would like a quotation please contact us.