It is that time of the year when insurance remewal demands are being considered. We have asked the ECB insurance brokers Marshall Wooldridge for information on Directors and Officers Liabilty. This information is also included in their renewal details and they are happy to provide further information -0800 289301 |
This provides the directors, officers and/or trustees of the Board, Association or League with protection against civil or criminal lawsuits and regulatory proceedings. Without this cover members are placing their entire personal assets at risk. The cover provides a pool of money that can be drawn on to fund defence and settlement costs and to pay for the costs of legal representation at investigations. Boards, Associations or Leagues may not immediately conjure up thoughts of disputes and litigation. However, life can be as complicated for these bodies and their trustees as it is for commercial companies and their directors. Current case law and statute can create a personal and unlimited liability for trustees. This means that without adequate insurance protection, civil or criminal lawsuits, and regulatory proceedings against trustees put his/her entire personal estate at risk. Potential Sources of claims for Incorporated Boards, Associations or Leagues
Employee rights and obligations Accusations of mismanagement Breach of fiduciary duties Insolvency Health and safety investigations and/or prosecutions Libel and slander Intellectual property infringements Trading standards Claims Example: a director faced criminal prosecutions for alleged breaches of health and safety legislation, which resulted in the accidental deaths of two employees Claims Example: whilst the Board, Association or League was in receivership, a director signed a company cheque to pay a key supplier. The cheque was dishonoured and the director was found personally liable for the amount of the cheque Potential Sources of claims for Unincorporated Boards, Associations or Leagues Claims Example: committee members of a Board, Association or League who employed an incompetent person to repair a stand were held personally liable to people injured when the stand collapsed Claims Example: a Board, Association or League held its alcohol sales licence in its treasurers name. A trading standards officer found short measures being sold at the body’s premises. Defence costs were incurred in defending the treasurer in the criminal proceedings which resulted For full details of the policy and a list of exclusions you should refer to the policy wording, a copy of which is available on request The insurers of the Directors and Officers Liability Section of cover are Chubb Insurance |