Directors & Officers Insurance
CHAS Insurance has a number of specialist schemes for Director's and Officers’ Liability Insurance for all types of trade.
Company directors are facing an increasingly litigious society as third parties and shareholders become increasingly aware of the duties and responsibilities of a company director. As a result, company directors and officers are coming under far greater scrutiny from shareholders, employees and other stakeholders to act in the best interests of the company and comply with their statutory duties. Insuring your company directors and officers in this respect is now more important than ever.Start your quote
Types of Cover;
Directors Personal Liability Cover : This protects the individual in respect of civil defence costs and certain additional losses that are not indemnified by the company.
Corporate Reimbursement Cover : This offers reimbursement to the company where it has indemnified it's directors.
Corporate Liability Cover : This is generally an optional cover protecting the company in respect of defence costs and certain liabilities arising out of civil and criminal actions. It can be extended to include employment practice claims such as; unfair dismissal, race, sex, age, and disability discrimination.
The Companies Act
In November 2006 the Companies Act 2006 replaced the previous legislation, the Companies Act 1985. It is a common misconception that directors in a limited liability company are protected from individual actions, but this is not the case. In fact, all directors and those acting as directors have unlimited personal liability in a wide range of circumstances under the Companies Act.
Dealing with claims of unfair dismissal is in the hands of the Employment Tribunal Service they are empowered to handle in excess of 70 different types of complaint including unfair dismissal on the grounds of race, sex, age and disability discrimination, plus complaints in respect of breach of contract and redundancy issues.
Under an employment tribunal service investigation, the company will incur significant cost and it is not possible for directors to face claims for compensation made directly against them.Talk To Us Today