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See the latest news and updates, with a focus on Directors & Officers Insurance - from MD, David McGowan.

August 2020


COVID19 - Directors & Offices Insurance & Other Important Updates


As ever I hope you are all well. It has been a little while since my last email, the reason being is that I have managed to squeeze some time off which I would highly recommend to all of you out there, as our mental wellbeing is of major importance and is often overlooked.

Please find below some important information we have put together for our clients, to ensure you and your business are protected and have the right level of cover.

David McGowan (Managing Director )


In respect of Covid-19 Business Interruption and the case between the FCA and Action Groups vs Insurers please follow the attached link. The trail has concluded and we are now awaiting the judge's decision. As ever and the offer is always there for our customers/clients and non-customers/clients that we are happy to check your policy wording and give you our best advice regarding cover and whether a claim to your insurer should be made.

An important consideration is in regard to your policy renewal. Insurers are taking different views as to what cover they are prepared to offer in respect of Covid-19. All insurers are excluding Covid-19 from Business Interruption policies however some are starting to either put a total policy exclusion or specific exclusions on certain parts of policies including Liabilities. If you are a business with customers or employees then you could have a liability exposure to Covid-19 if you are proven to have acted negligently in respect of protection of said customers or employees. Again it is important to speak to your broker and check your policy wording before renewing your policy. If you are not sure please do not hesitate to contact us whether a client of ours or not.

https://www.fca.org.uk/firms/business-interruption-insurance


Directors & Officers Insurance (sometimes called Management Liability Practices Insurance)

As a broker we have spoken many times to our clients about the importance of having the above cover in pace. This type of policy mainly covers the Directors and Officers of the business from being personally sued from the public or from government bodies. This affects you and your fellow directors, officers and even employees as you have an unlimited personal liability for decisions and actions you make on behalf of your company. These can be civil, criminal and regulatory in nature. Civil claims include historic common law duties which have now been set in law predominately under the Companies Act 2006. Put simply these give rights to others including shareholders, investors, employees, customers and creditors to take legal action against you if they believe you have acted negligently or not in the interests of your company. Criminal or regulatory claims are those that impose a personal liability on you for your actions and numerous government regulators have the power to investigate or prosecute you. In the most serious of cases, you can be imprisoned. 

Even if you have done nothing wrong, you will need to incur significant legal costs in obtaining the necessary legal expertise to defend you.

Here is an interesting article from Axa about the difference between a legal expenses policy and directors and officers policy.

Click here to view the AXA Article

The policy can be extended to include Corporate Legal Liability which will cover the legal defence of the business and also Employment Practices Liability which covers the legal costs of any employment disputes or tribunal costs.

With the uncertainty during he beginning stages of lockdown and now the return to work decisions you make, which can be with the best intentions, could come back to haunt you. Peace of mind would be having a Directors & Officers policy behind you. Please feel free to contact myself or your Account Executive to find out more about this type of policy, whether it will benefit you and what the costs are (you will be surprised at how little it costs!).


Cyber Insurance Update

On the last email I talked about the importance of Cyber security and how you can purchase Cyber Insurance, since this email the following government advice has been made available about Cyber Insurance and is well worth a read. As ever if you have any questions about this type of product please let myself or your Account Executive know:-

 Cyber Insurance Advice


Business Insurance - Important Update

Lastly now we are returning to work it is a good time to assess whether you have the correct levels of Insurance in place, there were a lot of companies that reduced their sums insured, estimates of turnover, wages and also put vehicles on SORN. I would now urge you to spend a few minutes just looking at your insurance portfolio and making sure you are happy with your level of cover. Also please note that any empty premises will now be subject to warranties and conditions, these were waved during the lockdown period but are now back in play. 

 As ever, please contact us if you are unsure about anything.


I have talked a lot over the few months about things to be watchful for, especially with the return to work. To read any of my previous emails (they are not too long I promise) please see the links below:-

14th May - click here

21st May -  click here

3rd June - click here

11th June - click here

4th July - click here

11th July - click here

29th July - click here

 


Further Information

As we mentioned earlier, as we are in a rapidly changing climate therefore we will continue to provide regular updates and advice over the coming weeks.

If you have any concerns or queries you can call us on 01473 408408

or e-mail us directly by clicking here