Ever considered the risks of ignoring D & O Insurance?
Ever wondered what happens if a case is raised against you – not your company, but you personally as a director or similar leading officer? The risks are big. You could potentially be forced to pay hundreds of thousands of pounds through defence costs as well as damages to the claimant. To say that such a financial blow could potentially cost you all your assets, even your home, wouldn’t be an exaggeration.
What are the risks?
There are a variety of things you need to be mindful of, ranging from breach of trust and neglect through to misleading statements and wrongful trading. These scenarios aren’t necessarily deliberate; often they are unintentional. Employees, members of the public and shareholders alike are increasingly aware of their rights, which means that you need to be well aware of these pitfalls: without Directors and Officers Insurance in place, it can be a hard fall.
It is not uncommon for an organisation to over-estimate their trading position when trying to expand and then going into liquidation when resources are overstretched. If these false estimates are also used to secure management bonuses or to help sales of shares, company directors can then be investigated for fraud, which can sometimes even lead to jail sentences.
How do you protect yourself?
Directors and Officers Insurance can cover things such as unfair dismissals or incidents of negligence that could be raised in a courtroom. Aynsley Insurance have a long history of helping company directors. There is a wealth of information throughout this website as well as online generally, but we recognise that more often than not, you just want to discuss your circumstances with an expert. Our experienced team will happily discuss your circumstances with you and help shed a little more light on D & O cover in general; just let us know how we can help.