Yutree Insurance

Directors & Officers Liability

May 28, 2012

Standard Directors & Officers insurance covers may no longer be sufficient to protect your company against new and changing laws because they tend to only cover individual directors and officers. Management Liability policies, however, protect both the individuals and the company providing the following core covers:

Core Covers:

Directors & Officers (covers you) This covers all directors and senior officers of the company for defence costs incurred during a claim and awards made against those individuals. This can include claims by shareholders, claims arising from pollution, defending trading standards actions and other regulatory claims.

Corporate Legal Liability (covers the company)

This section covers the company itself, providing protection against claims for breach of data protection, wrongful trading, taxation and other regulatory claims.

Employment Practice Liability (covers the company)

This area of cover is in our opinion a key benefit of the policy, providing cover for claims arising from wrongful dismissal, discrimination, failure to employ, pension and employee benefit claims and many other employment related issues.

Claims examples:

Regulation – The Crown Prosecution Service brought an action against a motor vehicle repair company under the provisions of the Corporate Manslaughter Act. They alleged a failure to implement an effective induction and supervisory programme had led to the death of an employee.

Liquidation – The creditors of a failed manufacturing company brought an action against two of its former directors alleging misrepresentation as to the stability of the company’s finances.

Employment Practices – An employee brought an action against his former employer alleging racial discrimination and unfair dismissal following redundancy. He claimed he had been selected on the grounds of his race. In each scenario, the Management Liability policy could have helped to cover the costs of defence, awards or direct financial loss made against the directors, officers, employees or the company.

News & Insights

A hub for Yutree and industry thinking