Directors & Officers Liability Insurance explained, at last.

D&O Liability insurance

Is a financial compensation policy that pays out when a director, manager or a person with a controlling influence within a business is found to acted negligently. D and O Insurance ensures that should they act in a way which exposes the business to a claim for negligence due to their decision or a series of decisions exposes the business to a claim for damages. Directors and offices liability insurance will provide cover for financial compensations against the business. Your D&O Insurance cover is a unique policy which cam about due to acts of directors in business causing injuries and sometimes death and previously having the ability to walk away from the problem by liquidating the company or business. Due to changes in legislation all persons which have a controlling interest in a business are personally liable for negligence.

(definition) – Protecting directors and officers, including other employees acting in a managerial capacity, in the event that they are sued personally in conjuction with the performance of their duties. This includes negligence and failing to act in the company’s or to exercise reasonable business judgement

Here are some examples:

Claims – who could make a claim against you as a director or officer? Any person that may have an interest in the affairs of your company could bring an action. This might include creditors, government departments or investigations by regulatory authorities and indeed the individual customers or employees you represent. I have shown two examples of claims we have dealt with in the past.

Claim 1 following damage caused to a residential block of flats it was discovered that the insurance purchased by the directors was inadequate to cover the loss.  Shareholders of the property (the residents) have notified that they may bring an action and if found negligent the directors would be liable for the uninsured loss.

Claim 2 The directors of a property management company brought an action against a resident for non-payment of a service charge. The resident then issued a counter claim against the directors for an incorrect calculation of his service charge. The directors were robustly able to defend their position knowing they had the benefit of this policy behind them.

Claim 3An Employee on a building site falls through a ceiling and lands on a concrete floor 10 feet below. Although injured, Heath & Safety Executive attend the scheme and caution the Directors prior to explaining they could be personally held liable for the accvident despite having Employers Liability Insurance. Due to changes in legislation Directors are now personally liable if through their own acts of errors, injuries and death on site can be pursued against them as an individual. This not only applies to the director but all employees having a managerial or supervisor capacity in the business.

d and o insurance

Getting good d and o insurance is vital for your business and peace of mind. It means your insurers will stand with you should a claim occur against you and having good d and o insurance will ensure the problem gets managed.

directors and officers liability

You can see now, that if you business particularly work in manual work then you must get directors and officers liability cover. You really cannot do without this and we can get you a very competitive deal for your directors and officers liability . All you need do is call us today on 0191 2130748 Crosby Insurance Brokers Newcastle upon Tyne are here to guide you through the process and provide professional advise. The premiums are not expensive, it’s in your interest to find out how much the directors and officers liability cover is. It’s free so don’t delay.

directors and officers liability


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