Jump to content

Directors & Officers Liability insurance - is it needed?


Recommended Posts

Hi again,

I've only come across this insurance when I was a director on a board of directors on a residential estate management company.

We had to enforce convenants and other estate regulations which (to be honest) some were open to interpretation.

As directors we took out a policy like this. The company had 146 shares issussed to approx 140 different shareholders.

As far as I know directors liability insurance :

 ""Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company."

i also run my own limited company with my wife as a fellow director only. We do not have a policy like this. We don't believe we need one.

hope this helps

conrad

Conrad Paton

+44 7957 959851

conradpaton@yahoo.co.uk

https://www.linkedin.com/in/conrad-paton-424446110

 

Link to post

I’m an insurance broker. As Conrad says claims can come from a variety of sources. If you are a director ( or officer) you have legal obligations and you may be PERSONALLY liable for these. The cost is likely to be £200 and it will help defenD claims made against you, even if your brother persues a claim against you in years to come for failure to apply diligence in your role. 

What experience do you have of running a company? Who advises you on your directorship role? If your primary focus/expertise is the property investment and the company is just the tool to do it, you might want to spend this small premium to protect your personal assets.

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...