Whilst a company’s liability is limited by its ability to meet its debts, a Director's liabilities are potentially unlimited.

Therefore, a Director’s personal assets (i.e house, car, etc) are potentially at risk in the event of litigation.

It is not just Directors who are at risk from litigation. By its nature, a company is an inanimate object and can only be controlled by individuals.  Therefore, it is those persons who act as the ‘mind and will’ of the company who can also be liable. For example:

• Company Directors (including shadow directors and de facto directors)

• Senior Managers

• Company Secretary

• Health & Safety Manager

• Accounts Manager

Most directors and officers will demand to be protected rather than put their personal assets at stake.

Examples of why do you need Directors and Officers Liability Insurance

Here's just a few areas where claims could be made against you:

• Companies Act 2006 (hundreds of possible areas of non–compliance)
• Data Protection Act
• Racial, sexual, and age discrimination
• Disability Discrimination Act
• Health and safety at work
• Corporate manslaughter
• E.U. directives and regulations
• Insolvency Act
• Pollution
• Investigation expenses
• Mergers and acquisitions
• Consumer protection, etc, etc.

Common Myths

Directors have limited liability: NO THEY DO NOT!

I don't have a title director, so I can't be held liable: YES YOU CAN !

The company can indemnify us: NOT IF IT GOES BUST!  (OR ISNT ALLOWED TO BY LAW)

We are only a small company: THE SAME LAWS APPLY!

They cannot touch my personal assets: YES THEY CAN !

Claims Examples

• A director being personally sued by an employee following allegations of discrimination
• A director being personally sued by creditors following failure of a company
• The Health & Safety Manager being sued by an injured employee, and prosecuted by the Health & Safety Executive, following a serious accident (note – a Directors & Officers Insurance policy wont pay fines {against the law} but it will pay for defence and investigation costs)

Remember: It’s not just the award against the Director/Officers. Defence costs can be extremely expensive.

How much does the cover cost?

The premium will generally depend on:

• Size of your company

• Nature of your business

• Previous claims/losses

• Level of cover required

Premiums can start at as little as £300, but the actual quotation will depend on your exact requirements, and the type/size of your company.

Please feel free to have a no-obligation chat with Vision Insurance Services Ltd. We can provide you with additional information, and a no-obligation quotation.

Telephone: 01276 850 544

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