Directors & Officers Liability Insurance

Directors & Officers Liability Insurance

Directors & Officers Liability Insurance (D&O) is now considered a crucial form of protection for all businesses, and is often a requirement before investors and board members risk their personal assets to serve your company.

Legally, the directors of a company and the company itself are separate entities and so may both be defendants, separately or jointly, in any legal action or prosecution. D&O can help to protect the personal assets of individuals and, crucially, to cover the costs of their defence.

Directors of all companies are now held, at an unprecedented level, to be personally responsible for actions and decisions they make on behalf of the company - putting their personal assets at risk if those decisions are tested in the courts.

How does D&O insurance operate?

The policy reimburses directors and senior managers against claims made against them personally. In addition, the insurance can also protect the business where the company itself is joined in the action. Cover is also provided for legal fees, professional charges and expenses incurred by an insured person who faces formal investigation by a government body into their affairs or the affairs of their company.

Where do claims come from?

  • Shareholders
  • Employees (tribunals)
  • Creditors
  • Customers
  • Directors (Director v Director)
  • Other third parties
  • Regulatory bodies (SFO, OFT, BERR, Customs & Excise, FSA, Trading Standards, Competition Commission – to name but a few)
  • Liquidators & Receivers

New and Emerging Risks

Directors and officers are bound by complex legislation in the UK, including:

  • Companies Act 2006 – which alone lists over 200 offences for which directors may face prosecution
  • Corporate Manslaughter Act – which hit the statute books in April 2008 and allows for the prosecution of individual directors
20170120115726

“Thank you so very much for this [and] for providing such a professional service”

Mandy S.

 

Case Study

Activism by shareholders, criminal prosecutions, investigations by vigilant regulators and employment disputes are all on the rise, and even non-exec directors are feeling the pressure. It’s not just the blue-chips who need to worry – managers & directors of SMEs are exposed too.

Health & Safety
An employee is involved with a fatal accident at work. The health and safety executive and the heirs to the employee’s estate bring legal action against the company and the directors personally for compensatory damages.

Shareholder Action
A minority shareholder brought action against the former directors of a property management company after they sold it. He alleged they had failed to obtain fair value for the sale of the company and demanded the directors make good the shortfall.

Financial Irregularities
Two directors were disqualified after actions by the secretary of state when financial irregularities were uncovered when the company went into receivership. The accounts were overstated prior to a public share offering, which led to an inflated share purchase price.

Misleading Statements
A competitor claims a board member has released misleading statements tarnishing their reputation. They issue legal proceedings against the company and the director individually for libel damages.

Inappropriate Adavances
An employee accuses a director of inappropriate advances after a business dinner celebrating clinching a large contract. The employee brings the action against the director personally.

Share Disposals
A share price plunge follows a profits warning. It is subsequently discovered there were numerous share disposals immediately prior to the announcement – all the directors face an investigation and the external shareholders sue for their losses.

 

If your company operates overseas, there’s also a raft of further legislation including EU directives and US securities laws. If directors make frequent business trips to the USA, adequate D&O coverage must be in place to provide legal representation & extradition protection should they be detained by US authorities.

D&O Insurance can be bought as part of a portfolio of insurance to keep your costs down.

Ready to work with us?

You can call us to talk more about your business on +44 (0)1223 200650 or +44 (0)20 3865 0149

What's Covered?

Monthly Payments
Cancel Anytime
Benchmark Us
Quote within 24 hrs

About La Playa Arts & Entertainment

Specialist & Independent

Specialist & Independent

The arts present a very specific set of risk exposures – and now your digital and online risks can expose you globally. We understand the risks and pressures you face - and we speak your language. We’ll support you with great advice - helping you make good decisions for your organisation.

Our exclusive portfolio policies can help streamline costs, and we’ll always help you stay ahead of the game in managing risk. The show must always go on - insurance isn’t just about processing a claim, it’s about thinking laterally to solve challenges and problems fast.

At La Playa, we’re passionate about the arts and creative industries – many of us are practitioners and active consumers; in fact, La Playa founded the first ever corporate art collective!

In-house IFA

We also offer Business Protection (including Key Person Insurance) and Employee Benefits: a joined up approach with a team of advisers working for your best financial interests - all under one roof

Advice You Can Trust

…from an expert who understands you

  • Specialist insurance for entertainment and the arts
  • Independent professional advice
  • Relationship-based service: right beside you when you make a claim
  • “Can do” culture
  • Seamless insurance across UK and US

Premiums start from £560 inclusive of IPT

What does “Boutique Service” actually mean?
La Playa’s Personal Risk Concierge means:

  1. A dedicated adviser so you can speak to the same person each time
  2. Careful listening to really understand your needs and priorities
  3. As much help as you need with completing forms to provide risk information
  4. A discreet and complimentary appraisal* of your property to assess the risks and ensure you have the right cover where you need it
  5. An independent market review - so you don’t have to shop around comparing policies, cover limits, risks covered and smallprint exclusions
  6. Careful monitoring of the insurers’ financial strength, claims and customer service
  7. An independent recommendation of the best policy for you - and, importantly, why
  8. Specialist policy wordings from underwriters who have demonstrated excellence and deep understanding of your risk exposures. We have analysed a wide range of policy wordings and have selected only the best for our panel. Our advisers have a deep working knowledge of these policies 
  9. An intelligently designed portfolio of protection across multiple asset classes and territories
  10. Advice on how best to manage your risks - to keep you safe but also to keep insurance costs down
  11. Expert guidance on valuations, security and risk management, and connecting you with specialist advisers and suppliers
  12. Direct phone, mobile and email access to your adviser for questions and advice. We aim to respond to emails within 60 minutes
  13. Policy documents emailed to you - no logins and passwords to remember
  14. An advocate beside you if you make a claim - thinking laterally to mitigate the impact, making useful connections to get you back up and running; driving through to a swift and fair financial settlement

Oh, and...

  • No call centres
  • No ‘hold’ music
  • No hidden fees

*subject to availability with our insurer panel

 

Photo from Arts & Entertainment
Photo of Tracey McCreath ACII

Tracey McCreath ACII

HEAD OF MEDIA, ENTERTAINMENT & BROKING OPERATIONS

Direct Dial: +44 (0) 1223 200655

Mobile: +44 (0) 7747 536965

Email: tracey.mccreath@laplayainsurance.com

Twitter: @TraceyatLaPlaya