Your business probably has insurance cover in place for a wide range of eventualities, however it is likely that this does not include Directors and Officers liability insurance (D&O). As our claims examples highlight, if you are a Director or Officer, both the business and you personally, are currently at risk.
Are you at risk personally?
To protect your company and your livelihood you should put this important insurance in place now.
It will provide you with protection and peace-of-mind against personal financial loss associated with claims of negligence or breach of responsibilities.
This is vital as legal actions can be brought from a wide range of parties including shareholders, creditors, employees, contractors, regulatory authorities and the company itself.
SME's at risk of legal action
Even if you work for a small or medium sized business you still need D&O cover. In fact, it is often considered easier to instigate legal action against smaller businesses, as larger organisations often have more people involved in decision making, making legal action more complicated. Despite this, research suggests that only around 20% of SME’s consider D&O cover.
The two main reasons for this are:
