Professional Indemnity / Directors and Officers cover

The Risk

For professions such as law, accounting and surveying through to those such as management consulting and investment advisors, there are risks associated with provision of a service. These include allegations of negligence, wrongful acts and errors or omissions arising from the conduct of business.

As the commercial environment becomes ever more litigious, so the risk increases. Organisations are now subject to greater regulation than ever before, making the risk of a compliance oversight more likely. It is also well known that when allegations are launched, no matter how spurious, the cost of the legal defence and any subsequent settlement can prove catastrophic.

The Solution

We are able to arrange specialist products to cover loss arising out of claims alleging negligence of the insured in the provision of, or failure to provide, professional services.

We arrange specialist cover for all professions, including:

  • Trust Companies
  • Legal Firms
  • Accountants
  • Architects
  • Consultants
  • Engineers
  • Financial Services
  • Independent Financial Advisers
  • IT Consultants and Companies
  • Management Consultants
  • Medical Practitioners
  • Professional bodies
  • Surveyors

The Cover

All policies cover both damages and defence costs. Although most insurers have standard policies, we prefer to use specifically tailored wordings agreed in conjunction with our Lloyd's Brokers and specific Underwriters at Lloyd's of London, which provide broad targeted coverage for any given profession.

Directors' & Officers' Liability

The Risk

Being a director or an officer of a company can place individuals at high personal risk. Directors' personal liability for the legal and correct performance of their fiduciary duties to their companies is unlimited but, unlike companies, directors cannot hide behind limited liability – ultimately all of their personal assets are at risk.

Furthermore, directors are “joint and severally liable” – the actions of one are the legal responsibility of all. Those in non-executive roles are equally liable. Some say that they are even more exposed in view of their limited involvement with the day-to-day business of the company.

If a company, shareholders, creditors or anyone believes that they have suffered a loss as a result of a wrongful act by a director, or they believe fiduciary or contractual duties have been contravened, they can sue, no matter how spurious the claim or allegation may be.

In recent years, there has been a dramatic rise in the incidence of claims and the trend continues upwards with the aid of a legal community that remains ever ready to advise would-be litigants.

The Cover

Our policy can include protection for the directors and officers:

  • Of the insured
  • Of all subsidiary companies including those acquired or created during the period of the policy
  • Whilst on outside boards

We can also arrange extensions of cover for the following:

  • Civil sanctions
  • Official investigations
  • Crisis management
  • Risk management
  • Employment practices
  • Retired directors
  • Severability
  • Punitive and exemplary damages
  • Cyber crime