The UK economy coughs up a staggering £33 billion a year* on disputes with employees and customers, and directors & officers increasingly face personal responsibility for actions and decisions they make on behalf of the company. Management teams (exec and non-exec) bear the weight of responsibility for the company’s performance, putting their own personal assets at risk if something goes wrong.
D&O insurance reimburses directors and managers for claims made against them personally, where their employer can’t or won’t indemnify them. It can also protect the business where the company itself is joined in the action. Premiums start at £250.00(plus tax), and quotes can usually be produced within a day.
“Directors’ & Officers’ insurance is a key cornerstone for any business - it’s important to assess your business risk and try to mitigate any potential losses. If your company operates overseas, for example, there’s a raft of further legislation including EU directives and US securities laws that need to be factored in. If your managers are travelling to the US in particular it’s critical to add D&O to your business protection strategy. D&O is now a must-have form of liability protection. No company, regardless of size or status should be without it. ” says La Playa’s Matthew Clark, Director, Science & Technology.
Email or call on 01223 200650 for quotes in November and December and LaPlaya will discount your new D&O policy by 15%. It’s that simple.
Where did it all go wrong: Case studies
Activism by shareholders, criminal prosecutions, investigations by vigilant regulators and employment disputes are all on the rise, and even non-exec directors are feeling the pressure. It’s not just the blue-chips who need to worry – managers & directors of SMEs are exposed too.
Health & Safety
An employee is involved with a fatal accident at work. The health and safety executive and the heirs to the employee’s estate bring legal action against the company and the directors personally for compensatory damages.
Shareholder Action
A minority shareholder brought action against the former directors of a property management company after they sold it. He alleged they had failed to obtain fair value for the sale of the company and demanded the directors make good the shortfall.
Financial Irregularities
Two directors were disqualified after actions by the secretary of state when financial irregularities were uncovered when the company went into receivership. The accounts were overstated prior to a public share offering, which led to an inflated share purchase price.
For more information visit laplayainsurance.com or call us on 01223 200650.
*Human Law Mediation
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