In today’s challenging business and economical environment, the decisions and actions of directors are increasingly under scrutiny from shareholders, regulators, government bodies, competitors, financiers and employees. Corporate and employment law is complex and directors face a growing risk of being investigated or sued, and the company may not be able or allowed to indemnify directors.
Even if you are innocent, you need legal representation which could be financially crippling. Companies don’t make decisions – the senior people within the business do, and Directors and Officers (D&O) insurance will provide and fund access to expert legal defence, and also pay damages including civil fines and penalties.
Examples of claims include:
• Unfair competition
• Health and Safety prosecution
• Official investigations
• Misrepresentation to lenders
• Defence of criminal prosecution
• Unfair dismissal or discrimination
Whilst primarily designed for director protection, many D&O policies can be extended to cover:
• Corporate (or Entity) Liability – management claims brought against the company name, including contract disputes, H&S prosecution and corporate manslaughter
• Employment Practices Liability – employment disputes and tribunals brought against the company. This gives greater protection than standard legal expenses insurance
• Crime – loss of company money, property or securities by employee or third party fraud
At Churchill we can offer expert advise and arrange competitive solutions to your management liability risks.
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