Insurance cover that company directors often forget
CLA (Risk Solutions) Ltd
If you are running a business, you will have made sure you are insured if anything happens to your employees, premises, equipment and stock.
Losing any of these could have a major impact on the financial survival of your business.
What you may not have considered is a scenario where you could lose your own personal property or wealth.
After all, your company is a limited company and therefore has limited liability so there is nothing to worry about.
However, as a director of the company your liability is unlimited.
If a claimant cannot get full compensation from your company, they are entitled to seek redress from the assets of its directors.
Directors and company owners often make decisions that entail an element of risk.
If, because of a decision you have made, the company is sued for negligence or a wrongful act, claims can be made not only against the company but also against the company directors.
This could have massive implications on your own wealth and lifestyle.
Legal and investigative costs can run into hundreds of thousands of pounds and that’s before any compensation or fines are levied by the courts.
Management liability insurance
This insurance cover has been specifically developed for companies with a turnover of up to 50 million.
It is taken out in addition to your usual commercial and property insurance and does not add very much in the way of premium to your standard insurance costs.
The cover includes directors’ and officers’ liability and company legal liability, employee dishonesty cover and legal pursuit.
You can also include pollution clean up costs and cyber-crime liability.
Access to employment, legal and regulatory advice is available with this policy to help you to manage a critical situation that could have devastating consequences for the company and its directors.
Why risk your own personal wealth now and in the future for a small additional cost?
Some of the decisions you make as a director now may not have an impact for years to come.
You will still be liable for those decisions even if you have left the company. The last thing you want is to be caught up in a claim after you have gone.
This insurance cover is ideal for small to medium sized businesses that are just as vulnerable to this type of claim as larger corporations.
It is often easier to reach and identify the owners of these companies.
Peace of mind is not easy to come by these days; for the price of a few sandwiches and drinks at your next board meeting, you could protect your company directors from claims on their personal wealth and the company from a devastating loss of funds.
To get a quote for your peace of mind, simply go to the contact page on our website and fill in your requirements and one of our team will contact you with more information about how management liability insurance works and the amount of cover you will need for your company.
Click here.