Directors and Officers  Liability Insurance – Summary of Cover

Directors and Officers Liability Insurance protects directors and officers for claims made against them for wrongful acts committed solely by reason of their acting as a director or officer of a company.

This is a summary of our policy underwritten by Aviva Insurance and does not contain the full terms and conditions of the cover, which be found in the policy documentation. To view a copy of the full policy wording please click here.

Directors and Officers Liability Insurance

Our comprehensive policy with Aviva provides Directors and Officers Liability Insurance PLUS Corporate Legal Liability giving your Directors and your Company the protection you need.

As an Officer of a Residents Management Company you have many legal responsibilities and could be personally liable for decisions made and actions taken whilst working in your position as a Director or Officer. London Flats Insurance recommends taking out Directors liability insurance to protect yourself and any other directors or officers of your company against the cost of any potential compensation claims made against any key managers of your organisation for alleged wrongful acts.

Who is the Insurer?

The insurer of the policy is Aviva Insurance Limited.

What is Directors and Officers Liability Insurance?

It protects directors and officers for claims made against them for wrongful acts committed solely by reason of their acting as a director or officer of a company.

  • Wrongful acts include actual or alleged:
  • Breach of trust
  • Breach of duty
  • Neglect/error/omission
  • Misstatement
  • Libel and slander
  • Breach of warranty of authority
  • Wrongful trading

What are the benefits and features of Directors and Officers Liability Insurance?

The summary below provides an overview of the key covers, features and exceptions available within the policy. If you’ve selected this cover it will be itemized in your schedule and the full cover details will be set out in your policy booklet.

How long does my Directors and Officers Liability Insurance run for?

The policy will remain in force for 12 months from the date of commencement (or as otherwise shown on your schedule) and for any period for which you renew the policy, as long as you continue to pay your premium.

Covers, features and enhanced benefits provided under the policy

Cover

  • Cover for legal costs, expenses and any civil damages awarded against you.
  • Reimbursement to the company if it pays out to protect you
  • Broad definition of ‘insured person’, including employees acting in a managerial capacity
  • Automatic cover for spouses, heirs and legal representatives named in proceedings
  • Legal representation expenses (up to the policy limit)

Extensions to Cover

  • Blanket cover for outside directorships of non-profit organisations and associated companies
  • Automatic cover for directors and officers of a new or acquired subsidiary company (subject to the size of the new company).
  • Cover for bodily injury defense costs (up to the policy limit)
  • Up to 6 years protection for retired directors and officers
  • Cover for emergency defense costs (up to 10% of the limit of indemnity in any one period of insurance)
  • Property damage defense costs (up to policy limit)
  • Personal tax liability (up to £100,00 in any one period of insurance
  • Civil fines and penalties
  • Any one claim basis of cover

Lifestyle and reputations costs and expenses

  • Crisis events and reputation protections (up to £100,000 in any one period of insurance)
  • Court attendance costs (up to £25,000 in any one period of insurance)
  • Bail bond costs (up to £250,000 in any one period of insurance)
  • Defense costs for extradition, deportation and asset protection (up to £100,000 in any one period of insurance)
  • Additional cost for court deprived assets (up to £100,000 in any one period of insurance)

Extensions in addition to the limit of indemnity

  • Additional limit for insured persons when the original limit of indemnity is exhausted and the company is unable to pay out to protects it directors and officers (up to £100,000 in any one period of insurance)
  • Additional limit for non-executive directors when the original limit of indemnity is exhausted and the company is unable to pay out to protect its non-executive directors (up to 10% of the limit of indemnity in any one period of insurance).

Main exceptions and limitations

Exceptions based on pre-existing wrongful acts

  • Known wrongful acts.
  • Pending and/or prior litigation.
  • Existing wrongful acts report elsewhere ie to a previous insurer

Exceptions based on public policy

  • Proven fraud, dishonesty and criminal acts.
  • Personal profit or illegal remunerations

Exceptions based on insurance available elsewhere

  • Bodily injury/property damage (sub-limited defense costs are included).
  • Pollution clean-up costs.
  • Professional error and omissions unless arising from a failure to provide supervision

Exceptions based on existing problematic areas

  • Claims outside the territorial limits
  • United States of America claims brought by the insured company or in relation to a public offering of shares.