Directors & Officers Liability insurance provides protection for individuals in a company who hold significant responsibilities, ensuring they are not personally held accountable for any claims arising from wrongful acts committed while acting as a director or officer. This policy can help cover fines, legal expenses, or damages that may need to be paid out of pocket. It applies to various roles within the company, including directors, officers, treasurers, compliance officers, and secretaries. Any employee who has the authority to make decisions on behalf of the company could potentially face personal liability for a claim. This policy is available for limited companies, PLCs, LLPs, charities, trusts or associations.

Employment Practices Liability (EPL) provides protection to companies against claims made by employees regarding violations in employment practices. These violations can include unfair dismissal or discrimination based on factors such as disability, religion, or race. For instance, there was a case where a manager unjustly terminated an employee who had taken time off work to care for her terminally ill son in the hospital. Despite the company having the necessary infrastructure for remote working, the employee’s request was denied. The employee filed a claim directly with the managing director of the company, and as a result, the director was found guilty of unfair dismissal. They were then ordered to pay £60,000 from their personal funds.

Corporate Legal Liability is a type of insurance coverage that can be included in a management liability policy, similar to directors and officers cover. However, this extension specifically offers protection for claims made against the company itself, rather than just the individuals within the company.

Wrongful Acts

Have you ever wondered what constitutes a wrongful act? Well, a wrongful act is essentially a corporate crime. It encompasses any action carried out by a company or its employees, whether it was done intentionally or unintentionally, that ultimately benefits the company in some manner.

Some examples of a corporate crime can include:

Breach of Contract

Tax evasion or related.

Offenses against the Health & Safety Act

Breach of Data Protection

If you would be interested in discussing these policies in more detail or to obtain a quote, please contact the team directly on 01924 499 182 and we will be happy to look at this for you!

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