It can be hard to switch off after a stressful day of work, especially as a business owner. Losing sleep at night contemplating all the decisions you made that day and how they will affect others. And it’s no surprise really. The laws your company operates in are constantly changing and as a company director or officer you have unlimited liability. Even if someone makes unfounded allegations against you, you’ll have to defend them – costing you time and money. Directors’ and officers’ liability insurance covers the cost of compensation claims made against your business’s directors and officers.

Management liability is the name given to a suite of complementary covers designed to give you legal protection if you’re accused of a wrongful act. This could be from something you’ve done or a decision you’ve made while doing your job. It covers directors, officers and the company itself. A breakdown of the sections of cover available are listed to the right.

Given the company pays the premium for this cover, which protects the Directors’ & Officers’ personally, it is a no-brainer for most businesses!

At Daines Kapp we aim to ease your worries when it comes to management liability claims. We not only arrange a comprehensive level of protection, but also expert legal guidance, risk management support, loss prevention solutions and a standout claims service.

For more information, please see the Association of British Insurers website here.

Directors’ and Officers’ Liability (D&O)

This section offers financial protection covering the senior management should they be accused of wrongful acts.

For example, following a near miss on a construction site, which is then investigated by the Health & Safety Executive, who determine that an individual director is responsible for a range of health and safety failings, bring a prosecution against that individual director in their personal capacity. A D&O Policy will pay for the legal defence costs of such a prosecution.

Corporate Legal Liability

This cover is also referred to as ‘entity cover’, and covers similar exposures to the D&O section above, but for the benefit of the company as a whole.

Employment Practices Liability

Employment Practices cover, known as EPL, covers the business for accusations of wrongful acts that have arisen from the employment process, such as wrongful termination, discrimination, sexual harassment and so on, in short, any matter which could end up in an employment tribunal.

The policies also typically have complimentary access to expert legal advice to assist with employment matters including terminations and redundancies. Some require that the insurer approved legal advisors are consulted prior to any such actions, with others offering reduced excesses where undertaken.