We provide directors and officers liability insurance protecting individuals against legal actions against them in respect of their legal liability arising from an alleged breach of duty as a director or officer of a company or organisation.
Companies face an ever-increasing of pressure from many directions, huge amounts of government legislation, increasing industry regulation and pressures from shareholders, special interest groups and members of the public alike. The company and its directors are exposed to these threats on both the corporate and personal level.
We offer a simple, straightforward solution for directors and executive protection in small to medium-sized enterprises with a turnover up to £2 million per annum. This product starts with annual premiums from less than £100 per year, and may be accessed from the menu on the left.
We also provide a highly competitive corporate solution for businesses and organisations of all sizes, with instant quotations for companies with a turnover up to £15 million per annum.
What is directors and officers liability insurance and who needs it?
Our introduction to directors and officers liability insurance, may be found from the menu on the left. This page seeks to provide a brief overview of the cover and an outline of the risks that face companies and organisations these days.
What is Directors and Officers Liability Insurance?
Directors and Officers Liability Insurance policies in the United Kingdom consists of three fundamental covers.
Directors Personal Liability Cover (Side A)
This protects the individual in respect of civil and criminal defence costs and certain additional losses that are not indemnified by the company.
Corporate Reimbursement Cover (Side B)
This offers reimbursement to the company where it has indemnified its directors.
Corporate Liability Cover (Side C)
This is generally and optional cover protecting the company. In respect of defence costs and certain liabilities arising out of civil and criminal actions. It can be extended to include employment practices claims such as unfair dismissal, race, sex, age and disability discrimination.
The Companies Act
in November 2006, the Companies Act 2006 overhauled the existing legislation of the Companies Act of 1985, and the new legislation is expected to come fully into force during 2008. It is a common misconception that directors in a limited liability company protected from individual actions. This is not the case, in fact, all directors and those acting as directors have unlimited personal liability in a wide range of circumstances under the Companies Act.
The Corporate Manslaughter Act
under this legislation, the overwhelming majority of companies in the United Kingdom are subject to scrutiny by the police and health and safety executive in the event of a workplace death. The act creates a new offence of corporate manslaughter, and if convicted a company may face an unlimited fine and the act makes provision for the prosecution of individual directors.
dealing with claims of unfair dismissal is in the hands of the Employment Tribunal Service, who are empowered to handle in excess of 70 different types of complaint including those of unfair dismissal on the grounds of race, sex, age and disability discrimination, plus complaints in respect of breach of contract, and in redundancy issues.
Under an employment tribunal service investigation, the company will incur significant cost and indeed it is now possible for directors to face individual claims for compensation made directly against them.
Blackfriars Insurance Brokers Ltd, has itself been established for over 35 years and now operates from offices in Cheshire, Essex and Kent. We have our own professional risks team that specialises in the arrangement and mismanagement for professional indemnity and directors and officers liability insurance clients.
For more information on our full range of services please visit our main group website, which may be accessed from the link at the bottom of this page.
If you have any queries whatsoever or wish to discuss your requirements with one of our senior brokers, please call us directly on the number shown at the top of this page.