Directors & Officers Liability Insurance
Directors and Officers of a Residents Association or Management Company have specific duties in respect of their position within the company. By acting in the capacity of company secretary or director, you are personally liable for any breach of your duties. These include failure to maintain the property and breach of statutory duties such as health & safety law, breach of trust, neglect and error and therefore your own personal wealth is at risk.
It can be a decision made by you or fellow directors that could cause a financial loss to another flat owner in the block. Although the possibility of being held responsible is small, should something happen, the consequences can be much greater and more serious.
What is directors and officers liability insurance?
Directors and officers insurance provides coverage for legal liability arising from a range of situations. These include breach of trust, duty, contract, and warranty of authority, as well as neglect, error, omission, misstatement, and wrongful acts committed by insured individuals in their capacity as directors and officers.
What does directors and officers liability insurance cover?
A directors and officers liability policy covers the costs of:
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Defending claims made against you (if there’s a defence your insurers can use) - Defending any employment related claims
- Defending at a first tier tribunal at which you are named as a respondent
- Representing you in court if charged with offences such as corporate manslaughter
- Attending an investigation which you are legally obliged to attend
As with all insurance policies, directors and officers liability cover is subject to limits, conditions, and exclusions. To learn more, please contact us for further discussion or request a full summary of the policy’s terms and conditions.
Examples of what directors and officers liability insurance would cover
A management committee was held personally liable for failure to appoint a responsible builder to re-roof their large block of flats. The firm concerned failed to complete the job in a satisfactory way and they went into liquidation shortly afterwards. The work was so poor that most of it had to be done again at an additional cost.
An unruly family bought a flat in an otherwise select block. The owner of an adjacent flat immediately put her property on the market and alleged that she had been forced to sell for £20,000 less than the true price. She was suing the chairman and secretary of the management company on the grounds that they had failed to discipline the family, who clearly intimidated them.
Residents of an apartment building brought a claim against the trustees of their residents association, alleging that they had misused funds collected from the residents. The residents claimed this meant they had to pay additional money to the association.
Why should you take out directors and officers liability insurance?
There are a number of compelling reasons you should take out a directors and officers liability policy, such as:
- Legal action can be very expensive, so a policy will help protect your personal wealth and assets should you be taken to court
- A directors and officers liability policy pays out for claims not covered under any other policy
- It will give you and your fellow directors peace of mind
Our Services
Along with our specialist block of flats insurance, we can help you with a variety of other policies and services.
Buildings Insurance
Terrorism Cover
Engineering Insurance & Inspections
Get your Directors and Officers quote today
Give yourself the peace of mind knowing that you’re protected from any claims made towards you, it couldn’t be easier to get a quote from us. To find out how much it would be to get cover, click the ‘Get a Directors and Officers Quote’ button now.
