Why Do I Need Directors And Officers Insurance?
In todays world it is a fact that legal actions and investigations are becoming commonplace. Legal costs are just for starters, many directors and managers of UK business are becoming increasingly concerned about the time taken to defend such actions and the harm to reputation that too often follows.
Investigations into companies and their management are a growing source of exposure for directors. Following the financial crisis, regulators in the UK and around the world have stepped up their activities with particular spotlight placed upon the conduct of executives. Regulators do not discriminate between listed companies, and those that are privately owned and managed. It is these smaller firms, often with less resources, that may find themselves susceptible to the ever changing legal and regulatory landscape, for which directors, senior managers and even employees can be held personally liable. Without Directors liability insurance, an individual may have to pay personally to defend any allegations of wrongdoing made against them – even if they are, and proved to be, innocent.
One of the latest developments to affect directors is the introduction of the the UK Bribery Act which not only covers UK organisations but UK nationals and residents also. Any company or partnership could be found guilty of violating the law if it does business in the UK, even if the actual act of bribery took place in an overseas location. Individuals who can be covered under a traditional D&O policy could face fines & sentences of up to 10 years in prison if they are found guilty of offences under the act, including disqualification proceedings. A standard Directors and Officers policy will provide protection for individuals from the significant costs of defending themselves in bribery and corruption investigations and allegations – up until the point guilt is proven.
Bromall Ltd are able to arrange comprehensive Management liability policies with W R Berkley Insurance (Europe) Ltd, a long time provider of Directors and Officers insurance in the UK market. A robust management liability policy will, in addition to D&O coverage, provide cover as standard for Corporate legal liability and Employment Practices liability (EPL). EPL provides cover for claims made by existing, former or even prospective employees with common claims scenarios involving allegations of unfair dismissal, sexual harassment or discrimination or racial discrimination.
Whilst Insurers are seeing a stark uplift in claims, broad coverage is available at competitive pricing. Bromwall are able to place coverage swiftly, with minimal fuss, and for a premium that is often less than the cost of a solicitors hourly rate.
Thanks to Duncan Goddard for his valuable input.
To discuss your Directors and Officers needs or to obtain a quote contact us on 01707 883377 or email us on info@bromwall.com
Image courtesy of Master isolated images / FreeDigitalPhotos.netTags: D & O, D&O, Directors and Officers Insurance, www.bromwall.co.uk+directors-officers-insurance
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