Directors and Officers
Our Directors & Officers Policy offers the personal protection required for senior members of a business whether you are a statutory director or a manager acting in the capacity as an officer of your company…
Our Directors & Officers Policy offers the personal protection required for senior members of a business whether you are a statutory director or a manager acting in the capacity as an officer of your company. This Insurance is a vital inclusion for any limited company or limited partnerships insurance programme. Now more commonly provided within an insurance coverage known as “Management Liability Policy” which also offers two additional elements of cover firstly Corporate Legal Liability and Employment Practice Liability both of which are detailed below.
Part and parcel of being a statutory director and to a limited extent a shadow director are the personal liabilities you undertake which are numerous and are therefore potentially onerous in the event of an circumstance that could give rise to an action being personally brought against them. Examples of such claims are as follows: –
- Employment issues including claims being brought directly against a director of discrimination or harassment
- Health & Safety breach including Corporate Manslaughter
- Trading whilst insolvent
- Regulatory Sanction
- Actions being brought by shareholder/s for negligence
- Actions being brought by another director/s
- and any other alleged dereliction of duty in your capacity as a director (excluding any intentional or premeditated criminal action)
In broad terms Directors & Officers liability insurance typically covers:
- Legal Costs, awards and settlements for any claim or regulatory action brought against present, past or future director /trustee / officer or employee
Main policy features *
Corporate Legal Liability (also known as Entity Defence)
This is a Legal Liability policy that protects a company from claims made for wrongful acts. It provides cover for legal costs, awards and settlements for any claim or regulatory action brought against your company (outside of claims that would normally be covered by Employers Liability, Public/Products Liability & Professional Indemnity); some examples of areas of cover are as follows:
- Breach of contract
- Copyright infringement or other intellectual property
- Corporate manslaughter
- Cost of legal representation in respect of an official (HMRC) tax investigation
- Anti-competitive behaviour
In addition some policies extend cover to include limited cover for Fidelity Guarantee (theft by employees) and loss by external fraud.
It is quite common for single claims to be brought in tandem with both the Corporate Legal Liability responding for the action brought against the company and the Directors & Officers Liability for the same action against the Director/s personally. Therefore, it is important for these covers to run alongside each other on the same policy.
Employment Practice Liability
This is a legal liability policy that protects the company and provides legal defence costs, awards, and settlements in the event of an alleged breach of the employment act where an action is being brought by a current, former, or even a future employee.
Examples of claims are as follows:
- Allegations or wrongful termination
- Hostile work environment
- Workplace harassment and retaliation.
Again, it is possible for single claims to be brought in tandem where the Employment Practice Liability cover responds to the action brought against the company and the Directors & Officers Liability for the same action against the Director/s personally. Therefore, again it is important for these covers to run alongside each other on the same policy.
Typical exclusions include:
- Deliberate, fraudulent or dishonest acts
- Acts intended to secure a personal profit to which the insured is not legally entitled
- Prior claims, investigations and circumstances to which you were aware of arisen prior to the start of the policy
- Any litigation which arose prior to the start of the policy
- Defined benefit pension schemes.
* This information is a general guide only. Adler Fairways will assess your requirements and recommend a bespoke range of insurance solutions to meet your needs. As part of the quotation process, we will provide full details of the specific coverage, benefits, limits, premiums, exclusions, excesses payable, and any other policy conditions that would apply to the insurance we recommend for you. We currently only offer cover to businesses registered in England, Scotland, Wales, Northern Ireland, the Channel Islands and the Isle of Man.
Words from our clients…
Elwood & Co Ltd,
“Having dealt with Adler Fairways over the past few years I would like to say how efficient the company is regarding quoting and claims. All the staff are very helpful and excellent to deal with. We manage a large portfolio of property in the Oxford area and their response for claims is second to none. They respond to every question within a short space of time and keep me updated with every claim. Without doubt, the best broker I have dealt in recent years.”
“Demma Group are existing clients of Adler Fairways and we have remained with them since 2013 due to the ultimate service we have received. Their professional manner on all levels and in every area of Insurance is faultless and I have never been given less than 100% commitment from all employees within this company. I would not hesitate to recommend their services to any company we are associated with. Looking forward to our next renewal with Adler Fairways.”
“Knowing that your insurance company are always available to discuss any issues that may arise and that they are then prepared to take over and deal with everything is a real bonus.”
“Adler Fairways are experts when it comes to insurance. We have been with Adler Fairways for the last couple of years in a personal and business capacity. Nothing is too much trouble and their knowledge of the insurance industry is truly outstanding. It is always pleasure doing business with them.”
Reirse Ryan Ltd,
“Since 2012, as a company, we have gradually transferred all of our Insurance business across to Adler Fairways. This strategy was primarily a commercial, cost based decision and continues to be so, but equally important is the personal relationship that has developed since, together with the specialist advice that has always been provided when requested.”
“We have worked with Adler Fairways for over five years and they have always offered comprehensive advice and have a very good understanding of our company requirements. We have an excellent working relationship with Adler Fairways and any claims or advice are dealt with in a timely and efficient manner.”
Salter Rex LLP,
“Adler Fairways have supported Salter Rex for over ten years for all our property and commercial insurance needs and always on hand when we have needed them most. We have always been impressed with their approach and manner in dealing with us and our customers from a day to day servicing point of view and also in dealing with our clients’ claims. We continue to have a healthy working relationship and anticipate a strong and successful future with Adler Fairways as our Broker.”
“Our business moved across to Adler Fairways several years ago and to be honest we have not looked back. We have been very impressed with their no nonsense approach along with the company’s initiative in making an extra effort for its customers. We can be nothing other than complimentary on the services they provide. Their commitment to providing an exceptional service has been second to none and we anticipate a long working relationship in the future. ”
TES Environmental Services Ltd,
“We have worked closely with Adler Fairways for over the last 10 years and trust their professionalism and excellent knowledge in the insurance field. At no point have we been failed on services provided and a particular thank you goes to Darren Hunt and his attention to details that is invaluable and key to the progression of our company.”