Protection for Care Industry Directors and Officers

Protecting your care business and employees

As lockdown limitations are lifted across the UK, many businesses across sectors are finding their feet as they begin to return to work. With all the changes, regulations and restrictions that must now be adhered to, organisations are feeling a significant impact which will lead to fluctuations in financial performance.

The accountability of management during lockdown has increased, meaning many directors and officers of companies have had to make quick decisions in regard to their business, customers, suppliers and staff.

The global economy could be looking at the largest ever recession, as an impact of the Covid-19 pandemic and the effects could prove damaging. It is absolutely vital during this time that businesses behave responsibly and ensure no avoidable harm comes to its employees and consumers.

Although this is unprecedented, responsibility for how a business responds over the coming weeks and months will ultimately fall on senior managers. During this period, it is key that you understand the protection that you may require during this critical time.

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Claims care industry directors and officers may face

Policy wordings will come under scrutiny to see whether a notification of the circumstances is specified and whether certain types of exclusion could cause an impact. Therefore, if senior managers make the wrong decisions now, they might face future claims, such as:

  • Shareholder derivative claims: when it is deemed that senior management are in breach of their financial duties to their shareholders.
  • Investor claims: this will examine the effectiveness of a management response following a fall in share-prices or scrutiny of company disclosures.
  • Wrongful trading claims: this happens when a director is held liable when a company has gone into an insolvent liquidation or administration.

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Covid-19 claims care businesses may face

We are also anticipating a significant number of Covid-19 related claims, which could include:

  • Allegations of discrimination, unfair or constructive dismissal
  • Whistleblowing/retaliation
  • Poor or inconsistent communication to employees
  • Failure to have adequate systems and technology in place
  • Failure to comply with legislation and regulation
  • Supply chain weakness
  • Lack of cyber resilience capabilities
  • Weak checks and/or preventative measures in relation to fraud
  • Inadequate arrangement of insurance

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Directors and officers insurance for care businesses

We work with specialists in the insurance and risk management sectors to ensure we have a variety of products to offer you, which will be in place to assist your business when it needs it most.

To find out more, see our care insurance webpage or email

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About the author

Carolyn Baker-Mellor - care insurance articles authorCarolyn Baker-Mellor is a respected industry leader with over 35 years' experience within the care insurance sector. She works across a wide spectrum of insurance product and policy development, delivery and optimisation for care industry clients, including managing global corporate accounts, working closely with trade associations, and helping clients in protecting their businesses and personal assets. Her areas of expertise within the sector include care homes, nurseries, domiciliary care, hospices and charities.

Carolyn currently works at Towergate as Head of Care Insurance. Towergate is the UK’s leading independent insurance broking platform and forms part of the Ardonagh Group, an international network of over 100 offices and 7,000 people which incorporates leading brands in both Lloyd’s of London and global markets.

She previously worked for 10 years at Aon as a director, client services leader and assistant director for claims.