Management Liability

Directors & Officers Liability – Corporate Liability – Employment Practices Liability

Personal Accountability

Unlike a company's liability, which could well be limited, the liability of directors and officers may be unlimited. Furthermore, Section 310 of the Companies Act, although amended with effect from the 1st April 2005, still limits the circumstances under which indemnity is provided to directors sued in their personal capacity whilst acting on behalf of the company. In such circumstances, their defence may have to be funded personally. Uninsured directors and officers therefore face the possibility of personal bankruptcy.

More Litigation

Increased legislation, both in the United Kingdom and world-wide, has escalated the possibility of legal action against directors and officers. Shareholders, creditors, competitors, regulators and employees are all potential sources of legal action, and with each new law, the possibility of becoming involved in an official investigation or litigation is heightened.

Risk Management

In the modern business world, the environment in which companies operate is constantly evolving. It is imperative that company directors and officers continuously employ effective methods of risk identification and management. Of course, whilst these may help mitigate the risks associated with corporate stewardship, they will not eliminate risk.

Why Insure?

In the current regulatory climate there is an increasing focus on the affairs of companies and their officials. Directors and officers are having to operate in a difficult corporate environment. New challenges and risks are faced in the light of increasing world-wide legislation and high profile media coverage. Mistakes can happen in the course of running the business that adversely affect shareholders, employees, creditors and other interested parties of the company. In these times of high consumer awareness such parties may decide to sue.