Often known as D&O Liability Insurance, D&O Cover or Management Liability Insurance; Directors and Officers Insurance is designed to help cover the cost of any compensation claims that a third party has made against your Business’s Directors or Key managers (who can often be referred to as ‘Officers’) for any alleged wrongful acts while carrying out their role within the company (which could be your Management Company for your Private Road), your unadopted road, land you own through a company or a limited company that owns woodland.
Examples of wrongful acts include the following:
- Breach of Trust
- Breach of Duty
- Misleading Statements
- Libel and Slander
- Wrongful Trading
Do I need it as a part of my Private Road Insurance?
If you have a management company that has directors or key managers then yes you should consider getting Directors and Officers Insurance / Management Liability Insurance to cover you for any claims made against you by any shareholders, third parties, regulators or employees.
As a Director or Officer you have certain responsibilities and duties relating to your position within the business, organisation or Management Company. Failure to do so or any wrongful acts can result in a third party making a claim against you.
Directors and officers insurance will cover any cost you have when defending these proceedings, and any compensation costs that arise from an unsuccessful defence.
D&O Insurance will help in the defence against criminal prosecution, civil proceedings and being disqualified from holding the position of a director in the future. These proceedings can lead to large fines, legal costs and in extreme cases imprisonment.
What is covered under Directors and Officers Insurance?
Directors and officers Insurance, Management Liability or Trustee Liability typically covers claims made by:
- Third Parties
Why would a shareholder or investor make a claim against me?
Basically if a shareholder or investor believed a Director or Officer failed to act in the best interests of the company, then they could decide to make a claim against them.
Other features you often see in a D&O Policy:
- Cover for any legal costs, civil damages or expenses that have been awarded against a Director or Officer
- Some D&O Policies can provide cover for Spouses or Legal Representatives or heirs that are named in the proceedings.
- Expenses for Legal Representation
What extensions or extra cover can I often get with a D&O Policy?
- Bodily Injury defence costs
- Property Defence Costs
- Protection for any retired Directors and Officers (up to a specific number of years)
- Property Damage defence costs
- Personal Tax Liability
- Civil Penalties and fines
- Cost to attend courts
- Asset protection
- Bail bond costs
- Reputation defence costs
Please arrange to speak with a Private Road Specialist Broker to enquire about a specific Directors and Officers policy and any additional features you may require, as well as what excesses apply, indemnity limits and any other questions you may have.
What is not covered in a D&O Policy?
- Any claims that are made against your business or organisation as a whole
- Any Criminal, intentional or fraudulent act
- Acts where a Director or Officer has gained in personal profit or other illegal remuneration
- Legal action that has started before the date the policy began.
- Claims covered by other insurances or claims made on another policy
How long does my Directors and Officers Liability Insurance/Management Liability run for?
Your Directors and Officers policy will remain in force for 12 months. The policy starts from the date of commencement. As long as you continue to pay your premium each renewal then this cover will remain in force until the time you decide to cancel it.
If you found this information interesting then please read about Loss Recovery Insurance!
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