Do I need Directors & Officers Insurance?
Anyone who takes on a management or administration role either in a Company or in a Residents’ Association or Residents’ Management Company should consider the need for Directors & Officers insurance.
It is becoming common practice for Directors & Officers to be held personally responsible for any wrongful acts committed in the course of making management decisions, putting their personal wealth at risk should a claim or allegation of wrongdoing arise. These allegations can come from a wide range of sources including investigations by the Health and Safety Executive, Inland Revenue, Employees or those residents the Association represents. Directors can be held accountable for the actions of fellow Directors and Officers even though they may not have committed, or taken part in a particular act. The personal liability of Directors and Officers for such wrongful acts is unlimited
In addition the Association or Company may find themselves involved in legal proceedings as a result of public statements made or even disputes over the use of the Association’s or Company’s funds.
There are only limited circumstances where Companies are permitted to indemnify their directors for wrongful acts and even if a legal action is successfully defended it may still incurr significant legal fees. Who then will make good the loss to the company?
At Circle Insurance we are able to provide you with a policy which will protect Directors and Officers for claims made against them, whether or not the wrongful act was committed by another Director or Officer of the company.
Wrongful acts include actual or alleged:
- breach of trust
- breach of duty
- neglect/error/omission
- mis-statement
- libel and slander
- breach of warranty of authority
- wrongful trading
Using our wealth of expertise Circle Insurance are able to advise you on exactly what you need to ensure your Directors’ & Officers’ Liability Policy will provide financial support in the event of a claim along with defence costs for investigations, costs involved in appearing in court and legal costs to fight various forms of allegations, involving any of the Directors. We are proud of our strong client relationships which have been built up by providing great customer service and we look forward to assisting you.
So for peace of mind and great customer experience either give us a call on 0115 784 2555 or click on the button below and we will call you.
