Directors and Officers of companies and limited liability partnerships have an ever increasing number of personal liabilities under Companies Acts and other legislation. When they are accused of breaching these duties actions are brought against them personally and this can have devastating consequences for the individuals concerned, placing all of their personal assets at risk. It is a common misconception that being a director of a limited liability company or partnership limits the director’s personal liabilities. This is not the case; directors’ personal liabilities are unlimited.
Exposure is not limited to large public limited organisations; the Companies Acts are equally applicable to the directors of small private limited enterprises. Government bodies such as the DIT, HSE and SFO are increasing the number of actions and investigations against businesses of all sizes. In One year:
The exposures are so onerous that many business people operating at this level will not now accept a board or non-executive position without adequate insurance cover being in place.
D & O Insurance provides a pool of money for the directors and officers of a company that can be drawn on to fund defence and settlement costs and to pay for the costs of legal representations of investigations.
Legislation such as the Corporate Manslaughter and Corporate Homicide Acts have imposed further responsibilities and duties upon businesses and the highlights the additional need for Corporate Legal Liability cover.
We would strongly recommend that all limited liability companies and limited partnerships arrange Directors and Officers Indemnity, with a Corporate Legal Liability extension.
Marshall Wooldridge are business insurance advisers specialising in the food and drink arena. We are proud to offer insurance broking and risk management services to the Deliciously Yorkshire members.
Working in partnership with specialist markets, our solution for Waste Management, Recycling and Environmental Services offers valuable additional cover over and above that normally provided.