As a director, officer or manager of a company you are automatically exposed by law to unlimited personal liability which can put your personal wealth at risk. You are required to account for your personal actions and, in some cases, the actions of your fellow directors or officers.
Things you should know:
- Directors do not have limited personal liability - your personal wealth and assets are at risk.
- Your company cannot indemnify you if it has gone into liquidation or administration - by then, it's too late.
- Increasing legislation and regulations apply to all companies - big and small.
- Non directors can be liable to.
A Directors & Officers Liability policy will protect you financially if a claim is brought against you or insured staff. This means your liability is covered for not adequately performing to your obligations or failing to exercise reasonable judgement. It will also reimburse your company for any payments it has made on behalf of the directors and officers as indemnification.
Ensure that you don't get caught out, get your Directors Liability insurance policy in place now.