About Our Management Liability Insurance
Director & Officers Insurance
Directors and Officers Insurance, or D&O Insurance, will cover you as a company’s director or officer against any wrongdoing claims. Now, these things can range quite widely from breaches of trust or duty to wrongful trading or neglect of responsibilities. Still, ultimately it is for when the company is looking towards the directors or officers to blame any incident.
Do I need D&O Insurance?
Directors and officers have particular job responsibilities that are crucial to the workings of the business at large. So when something goes awry, they are in jeopardy of civil and criminal prosecution from shareholders, employees, investors and third parties. D&O insurance covers the costs of defence in court and throughout the prosecution process.
Without it, this would fall solely on the heads of the directors and officers, which could prove exponentially expensive.
What is and isn’t covered?
The insurer covers any claims made by regulators, shareholders, investors, employees, and third parties for failure to act in the company’s best interests. It also covers any personal pursuance from the company’s creditors, a vital policy aspect. In addition, there are a few other things covered in the insurance policy, such as protection against insolvency claims and breaches of European legislations.
D&O insurance does not cover claims made against the company as a whole, only claims made against the individual officers and directors.
Corporate Legal Liability
Contrastingly to the previous policy, Corporate Legal Liability insurance, or CLL, covers claims made against a company on the whole and not on the individual people within it.
Again, it covers a wide range of claims from employee pensions, employee benefits, data protection breaches and any other business crimes.
Ultimately, if your company acts unlawfully in any way, the company and its employees can be prosecuted in a court of law. CLL covers the company in this case and will cover the legal fees associated with the prosecution.
Why Do I Need CLL?
A business owner will rarely seek to act unlawfully. Nevertheless, incidents do happen, and certain employees may put the company in a bad light. It is possible that third parties or regulators may prosecute you. The prosecution is not evidence of guilt but an accusation that must be answered if the courts deem it necessary. If you’re uninsured and unable to pay your legal fees, you could find yourself spiralling out of control financially. CLL provides coverage for these situations that may appear out of nowhere. You are not required to take out CLL, but the repercussions could be severe without it.
Employment Practice Liability
An employee of your company may bring a lawsuit against you if they believe that their legal rights have been violated in some way. Employment Practice Liability insurance, or EPL, covers your company for the financial aspect of the lawsuit. There is a wide range of claims included here, from discrimination to wrongful termination, and it’s an essential policy to protect your business.
Do You Need Employment Practice Liability Insurance?
The amount of employment litigation cases continually rises each year, especially with the number of solicitors that offer low-risk and low-cost options for claiming against their employer. It is very costly to defend such claims, whether just or unjust, which puts a company in a precarious financial position. Employees can receive unlimited compensation if they bring a claim against their employer for illegal actions, so you could be exposed without this insurance.
