Directors & Officers Liability PROTECTION FOR COMPANIES AND SENIOR MANAGEMENT

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1 Directors & Officers Liability PROTECTION FOR COMPANIES AND SENIOR MANAGEMENT

2 Why is Directors & Officers Liability needed? Legislation has increased senior managers accountability Many laws now regulate companies and their directors No win, no fee schemes increase the potential for claims to be brought against companies and their directors A limited liability company status does not protect its directors from personal liability Director liability is unlimited to the extent of a charge on his salary if assets such as his home, cars and savings do not meet his liabilities. We highlight some issues that have arisen within the UK. These are not high profile cases that you could read about in the media but they demonstrate how companies or senior managers can get caught up in situations which can seriously impact finances. Without the protection of a Directors & Officers (D&O) insurance policy, costs may have to be borne by either the individual or the company.

3 Fatal accident: company breaks law Following a fatal accident the police conducted an investigation and found the company to be in breach of various employment laws. Although the company had purchased D&O insurance it had not purchased entity cover and so had to pay for its own defence costs.

4 Environment Agency raises concerns Following concerns raised by the Environment Agency a company faced a Health and Safety Executive investigation. A claim on the company s D&O policy resulted in ACE paying the company s defence costs.

5 Investigation follows fatal injury An employee of a company suffered fatal injuries. The matter was investigated by both the police and Health and Safety Executive. ACE paid the legal representation expenses in respect of this investigation under the Health and Safety at Work Act 1974.

6 Allegation of defamation A director of a company allegedly made defamatory statements about a former employee. The former employee requested that the director admit to the defamatory statements and formally repeal them. ACE paid the director s defence costs.

7 HSE investigation follows accident An accident occurred in which a fork lift truck toppled over at the premises of a client of an insured company. No one was injured however the Health & Safety Executive commenced an investigation. ACE paid legal representation expenses when interviews under caution were conducted with representatives of the company.

8 Employment tribunal hearing An employment tribunal hearing of unfair dismissal and sex discrimination was brought against a company after an employee was dismissed. ACE paid the company s defence costs.

9 With no win no fee schemes and an increasingly litigious society, ensuring compliance with rules and regulations is more important than ever. To help you, ACE has partnered with a leading national law firm, Gateley. This assistance service is specifically designed to offer guidance to avert potential incidents relating to employment practices or the duties and responsibilities of directors and officers. Peace of Mind ACE was one of the first insurers to write D&O insurance and, with its highly respected underwriting team, now offers one of the broadest policies in the market. The ACE Elite D&O policy brings peace of mind, and provides directors and officers with the confidence to perform their roles secure in the knowledge that they have considerable protection from one of the world s leading insurance and reinsurance companies. Services Provided Access to a free legal advice line* Discounted rates for contract and policy reviews by experienced Gateley solicitors Discounted rates for bespoke training sessions provided by Gateley Complimentary membership to HR Club a forum hosted by Gateley Complimentary monthly legal newsletters published by Gateley Discounted Witness for a Day DVD published by Gateley Website Legal advice helpline [email protected] * Subject to terms and conditions. Calls from mobiles will be charged at the caller s standard rate For further detail and a sample policy wording please see our website at:

10 Contact Us ACE Group The ACE Building 100 Leadenhall Street London, EC3A 3BP Tel: About ACE Group Established in 1985, The ACE Group has grown rapidly to become one of the world s premier providers of insurance and reinsurance products and services. ACE has offices in 54 locations and can help clients manage their risks anywhere in the world. Our clientele varies from multinational corporations with property and casualty exposures, to individuals purchasing personal accident, travel or supplemental health insurance. We offer products tailored to the needs of any size of client. ACE has a strong presence across the United Kingdom and Ireland, with 13 offices employing 1,300 people and serving 5 dedicated regions: Ireland, Scotland, North of England, Midlands and Wales, and London and South East England. Ours is a customer-centric business model: we have a relationship management structure for key accounts and claims and 20 dedicated business relationship managers. ACE is listed on the New York Stock Exchange with the ticker ACE. ACE s core underwriting insurance companies are rated AA- (very strong) by Standard & Poor s and A+ (superior) by A.M. Best. ACE European Group Limited registered no is registered in England at registered office 100 Leadenhall Street, London, EC3A 3BP and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Additional information can be found at Ref: 081UK Published October 2013