Protecting Your Personal Assets

Being a director or officer often means taking difficult decisions which at a later stage may be questioned either by external parties such as shareholders, creditors, customers or tax authorities, or by internal parties such as the company itself, subsidiary companies or an insolvency trustee. Tighter regulations, employment law changes and new EU directives all add the risks facing individual directors and officers.

Increasingly we are all becoming more litigious in both our business and everyday lives.

  • Employees might allege breaches of employment law

  • Creditors might take action for debt default or ‘wrongful trading’

  • Shareholders might accuse directors of misleading investors, poor management or business decisions or illegal activities

  • Competitors or customers might allege anti-competitive practices

  • Government departments may decide to take action for alleged breaches of legislation such as the Companies Act, Health & Safety at Work Act or the Data Protection Act

Directors’ and Officers’ liability cover is designed to protect the personal assets of company directors, officers and senior managers against personal liability incurred through claims made against them as individuals for alleged or actual ‘wrongful acts’ committed whilst managing their business.  Without such protection, directors and officers may find themselves personally liable to the full extent of their assets.

The following extensions to the standard cover are typically also available:

  • Cover for liability arising from any actual or alleged negligent act, error or omission of the company itself, but not including employment claims

  • Employment Practice Liability cover protecting the company itself against an employment claim following an actual or alleged breach of employment legislation

To find out more, talk to your usual Towergate Adviser.

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