Business Insurance

Management Liability

We can advise on directors’ and officers’ liability, ensuring your business is protected against the risks it faces.

Directors Officers/Management Liability

Management Liability, including Directors’ & Officers’ Liability, is an incredibly important protection in that it provides indemnity to all past, present and future Directors & Officers (anyone in a managerial/supervisory role) for any personal liability that they may assume while carrying on their business.

 

Why is Directors and Officers Insurance Important?

It may surprise you to know that your personal liability is unlimited if pursued individually for exposures that emanate from your professional life and that the companies' limited liability status does not protect you or limit your liability in this regard.  Individuals (Directors/Officers/Partners/Members) can be pursued for a variety of actions most commonly arising from three areas:

Breach of Health & Safety Policy

  • In the event of an injury or illness to an employee or, indeed, third party where an allegation can be brought against the business for negligence, it is increasingly common for law firms to name an individual as a second defendant to guarantee some success and avoid the 'phoenix company' scenario
  • Corporate Manslaughter is now very real and there are case examples of businesses and individuals being prosecuted
  • Legal costs in this area can be considerable and a company can only provide assistance to individuals if successful in defence - therefore you must ask, could your business afford to provide legal assistance and what happens if your defence fails?  Can you afford to repay the company?

Financial Mismanagement

Allegations of wrong doing can be made against individuals for negligent management which results in a loss

Employment Law

Individuals are increasingly pursued by career claimants and disgruntled employees/ex-employees/unsuccessful applicants and others for allegations of wrong doing in respect to:

  • Bullying
  • Harassment
  • Discrimination

 

We must stress that actions can arise from any allegation no matter how spurious and, as Employment law is a procedure dominated environment it is possible for a claim to succeed due to the business falling foul of procedure, having essentially done nothing wrong.  Many of the claims examples mentioned above may also be subject to the company reimbursement as permitted by the articles / Memorandum of association.

For example, a claim might be filed against you for actual or alleged breach of duty, neglect, errors or omissions and mis-statement. Actions can be brought against you by shareholders, employees, customers, suppliers, creditors or competitors from all sectors, including public and private companies, education and not-for-profit organisations. 

We can advise on directors’ and officers’ liability, and the level of cover you need to consider having in place and in so doing, giving you the peace of mind that you are protected.