Directors & Officers Liability provides personal protection for directors, officers and senior employees of a company. Unlike many insurance covers where risks are obvious and damage is easily assessed claims under Directors & Officers Liability insurance policies can be exceedingly complex.

Corporate Liability Cover gives protection for claims made against the company for financial loss.

Employment Practices Cover gives protection for the company against claims made by employees for breaches of employment conditions or regulations?

Can I afford not to be covered?

The increasing burden of legislation is making the running of a company ever more difficult. The Companies Act 2006 introduced a statutory duty for Directors, a breach of their duty means that Directors can be held personally liable for damages and expenses, this can be very costly.

In our April newsletter we considered the impact of The Corporate Manslaughter & Corporate Homicide Act 2007 and how for the first time companies and organisations can be found guilty of corporate manslaughter as a result of serious management failures resulting in a gross breach of a duty of care, with unlimited fines being given where there has been a failure in management which leads to death.

The amount of applications to Employment Tribunals is increasing at an alarming rate of 15% per year, with an average cost of a dismissal claim now over £8,000.

Who can claim against me?

Examples of claims

The company secretary of a leisure group who owned a number of licensed premises was prosecuted after investigations discovered that short measures were being served at the premises as a matter of course. A health & leisure club was sued by several shareholders for loss of value, after the club announced a proposal to sell land and invest the proceeds in the business. The shareholders argued that the proceeds of the sale should be distributed to shareholders. Costs of over £25,000 were incurred in defending the claim.

An employment tribunal ruled that a hotel company had discriminated against an employee in their catering team who was passed over for promotion several times. The tribunal held that the manager of the department showed an apparent disregard for equal opportunities and procedures and so awarded compensation to the employee.

Tests revealed that the insulation boards contained amosite, or brown asbestos fibres - one of the most deadly forms of the material. Nevertheless, management informed the workers that the substance did not pose any danger to their health, and they should finish the job.

YOUR NEXT STEP

If you would like to discuss any of the above covers or would like a quotation, please contact Victoria Romero-Trigo on 0113 2818110, click through to our website or email us at info@ndml.co.uk

For more information on any of NDML'S Services please contact:
Victoria Romero-Trigo on 0113 2818110.

or visit our website