How to protect against poor decisions and mismanagement:
Directors and officers of businesses have specific duties, responsibilities and powers which are usually defined in their job description or terms of reference. In the event that a director or officer is found to have acted outside of their terms of reference, civil, criminal or regulatory proceedings can be brought against them. Directors may have personal liability for any actions or decisions that they make on behalf of the company.
Poor decisions, mismanagement, and breaches of the Companies Act, even if your actions were carried out with the best intentions. Allegations of negligence made against directors and officers can be costly to defend and the legal costs alone can run into thousands of pounds.
If your business doesn't currently have a Management Liability Insurance, you may have to pay the defence costs (and any subsequent compensation payments) out of your own personal wealth.
In addition you could face:
- Disqualification from holding the position of director.
- Civil proceedings which can lead to considerable legal costs and awards for damages.
- Criminal prosecution which can lead to fines and possible imprisonment.
- Allegations of wrongful acts that can be made against you include:
- Breach of trust - Breach of duty – Neglect – Error - Misleading statements - Wrongful trading
- Who can make a claim against you?
- Shareholders – Investors - Employees - Regulators (e.g. HSE or the Office of Fair Trading) – Creditors - Third parties
We can call upon over eighty-five years’ experience to advise you on Management Liability, Directors and Officers Insurance, Professional Indemnity Insurance, Employment Practices Insurance and Corporate Legal Liability Insurance.
We have developed strong working relationships with leading liability insurers, allowing us to offer good quality flexible insurance with wide ranging cover. We will work with you to become your trusted insurance partner, and can give help with policy wordings where necessary, and risk management to help you control your insurance costs. Contact us today on 01698 263 162.