Contact a D&O expert today
Unfortunately for the many directors and officers working for businesses across the UK individuals are becoming increasingly vulnerable to claims due to several factors:
- Employees know their employment rights and are increasingly likely to sue.
- Legal liability is shifting away from companies and more towards personal liability.
- Regulators are now far more proactive in targeting and investigating companies.
In reality claims can occur from any act or decision carried out in the workplace, meaning that they often range in severity and validity. Common claims typically include:
- Claims by investors/ shareholders who blame directors personally for their own losses.
- Actions brought by the HMRC where insolvent trading or misappropriation of tax is suspected.
- HSE investigations into negligence.
- Police and SFO investigations where fraud is suspected.
- Actions brought by liquidators where wrongful trading or incorrect payments are suspected
|A newspaper distribution employee seriously injures themselves whilst lifting a bundle of newspapers being delivered. An investigation discovered the employee was not sufficiently trained in lifting resulting in both the employee and HSE taking legal action against the directors.|
|With a comprehensive directors & officers insurance policy from NC Insurance the costs of defending the claim would be covered as well as any fines or compensation payable.|
|An engineering firm invested shareholder money into a project on the assurance of the company director that the project would be an opportunity to grow. The company director had not completed sufficient research into the project and the shareholders faced significant financial losses as a result.|
|The shareholders decide to claim against the company director for their negligence, fortunately with directors and officers insurance any legal costs and subsequent compensation will be covered.|
|A companies sensitive data is accidently posted online due to an error by the directors. As a result both the ICO and the individual customers seek to claims compensation for the loss of sensitive data.|
|With D&O insurance in place the company will be covered for legal costs, fines and compensation as a result of the breach of the duty of trust.|