When individuals take on the roles as director or officer, they can be held personally liable for their actions in this capacity. Anyone who is a director or officer of a Company, Charity or other institution run by a board or committee is at risk.

Directors and Officers Liability insurance provides cover specifically in respect of breaches of duty by a director or officer in managing his or her Company’s affairs.

Cover

The purpose of a Directors & Officers policy is to provide defence costs and/or compensations for Civil Liability arising from the Wrongful Act of a director or officer in the running of the company.

Definitions

Wrongful Act is defined in the policy as:-

Any actual or alleged

• Breach of trust
• Breach of warranty
• Neglect
• Error
• Omission
• Misstatement
• Misleading statement

committed by Persons Insured

Claims made basis – regardless of when a director or officer commits a wrongful act, indemnification will be provided by the policy in force at the time of its discovery.

Persons Insured – present directors and officers, former directors and officers, future directors and officers. Spouses, heirs or legal representatives in the event of death, bankruptcy or insolvency of a director or officer.

Limits of Indemnity – a limit of indemnity of up to £1 million may be chosen, which will include payment of costs. A claim payment will reduce the limit of indemnity by the claim amount until the renewal date of the policy, unless an additional premium is paid to reinstate the full sum insured.

Extensions

Extended reporting period

Discovery Clause – the option to purchase extended period of cover in which to notify claims in the event of cancellation of policy cover.

Company Reimbursement – reimbursement to the company where it is obliged to indemnify the directors.

Defence Costs – arising from bodily injury limit £50,000.

Main Exceptions

• Dishonesty, Fraud, Malicious Conduct or Personal Profit.
• Bodily injury (other than defence costs)
• Property damage
• Fines, penalties and damages
• Pollution
• The first £100 of each claim
• Failure to maintain any insurance policy unless Property insurance is arranged through Residentsline.

Special Features

Specialist Claims Services
Legal and Tax helpline
Counselling Service – available to all employees

The above is a summary of our understanding of the responsibilities of a director or officer and our interpretation of the Norwich Union Directors & Officers Liability Insurance policy. Please ask for a policy wording for full contract terms or alternatively, for more information, see www.residentsline.co.uk/policies.htm

IPT

All premiums will have Insurance Premium Tax at 5% applied to the net premium.

Example

Examples follow for properties with up to 100 dwellings

Premiums shown include Insurance Premium Tax at 5% Policy Excess - £100. Rates apply to Limited Companies. Separate rates apply to Committees and Associations.

For more information email info@flat-living.co.uk

www.flat-living.co.uk is an Introducer Appointed Representative for Residentsline Ltd which is authorised and regulated by the Financial Services Authority