Ascend Brokering Deals
September 29, 2019

10 reasons why you should consider D&O Cover

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• Employment Claims Sadly, we now live is a litigious society, ‘where there is blame there is claim mentality’. A company needs to protect itself, as claims can result in astounding settlements.

• SME’s (Small Medium sized Enterprises) are exposed. In fact, a small operation is far more vulnerable to financial devastation from litigation fees than a larger company with more money and resources is.

• Personal assets at risk. If a Director has been accused of breaching their duty, then their personal assets are at risk.

• Regulators are becoming more vigilant. One of the main drivers of claims in the UK has been the increased efforts made by regulatory bodies to investigate and prosecute

• The cost of legal action. There has been an exponential rise in legal costs for defending allegations. Companies or directors could find these run into thousands of pounds.

• Investors could try to sue you. Because investors who lose value in their shares as a result of a Director or company’s alleged misconduct, may pursue court action for compensation.

• Protection against insolvency or bankruptcy. If a Director or company becomes insolvent or bankrupt and a creditor feels that, they have not acted in their best interest they may take up legal action. Another cost to factor in.

• Do not assume that D&O insurance is covered by other liability policies. A common misunderstanding by other Directors or companies is that this is covered by other liability policies such as Professional Indemnity

• D&O insurance is affordable. The cost per annum is affordable when you consider a claim could run into hundreds of thousands of pounds, it is worthwhile.

• An advantage when it comes to attracting individuals to join your company, knowing they will be protected.

If you have any questions, do not hesitate to contact us on 01245 449060