YOUR FMB D&O INSURANCE
A s a company director or key manager you are, personally. Whilst many businesses are covered against these claims, you as an individual might be unprotected. That’s where Directors and Officers insurance (D&O insurance) comes in. What is D&O insurance? D&O is unique. While other insurance policies safeguard the overall business and its reputation, D&O insurance specifically protects the people behind it. unfortunately, open to a range of claims made against you It is designed to shield a company’s directors and key managers from the significant financial costs of allegations made against them. They could, for example, be accused of knowingly
disregarding health and safety regulations or being negligent in the course of their daily duties. As a director or manager, you would be obliged to pay the cost of any legal defence, awards or settlement payment arising from the claims made against you. So having D&O insurance gives you both peace of mind and a practical solution to help you to take care of these costs.
In cases where guilt is uncertain before a trial, insurers may provide an initial payment but decline further coverage upon a guilty verdict. This insurance is tailored to protect individuals acting in their roles as directors or officers and doesn't extend to claims made against the entire organisation. Do you need D&O insurance? If your company has directors or key managers, D&O liability insurance can financially safeguard them against compensation claims lodged by shareholders, investors, employees, regulators or third parties. Directors and crucial management staff without insurance are at a greater risk of being unable to defend themselves against severe claims. Consequently, they may face disqualification from directorship and substantial financial burdens from civil proceedings and subsequent awards and damages. They may even undergo criminal prosecution, possibly resulting in fines and imprisonment. Given the increasing potential for litigation to occur and the many risks faced by directors and officers, D&O insurance is crucial for protecting individuals in the workplace.
What and who does D&O insurance cover?
D&O Insurance is a flexible policy that can provide cover for senior members of an organisation, including executive and non-executive offices, managerial and supervisory employees, and non- executive directors. The majority of D&O insurance policies cover all current, future and past directors and officers of a company and its subsidiaries. The policy typically provides protection against events such as: Misleading statements Financial reporting errors Negligence Failure to comply with regulations or laws
Breach of duty Breach of trust
What is not covered by D&O insurance? D&O insurance does not cover deliberately fraudulent, criminal, or intentional non-compliance acts.
For more information or to receive a quote, contact FMB Insurance on 01353 652760
or email insurance@fmb.org.uk .
As a director or key manager, there is a range of claims that could be made against you. Be sure to keep yourself safe PROTECT YOURSELF
Master Builder 40
www.fmb.org.uk
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