A stark warning to company owners & directors of their increasing accountability in the light of impending law reforms & how they need to prove they are ready to meet the changes.
Directors are being urged to seek assurance the limits & coverage in Directors & Officers Liability & Statutory Liability policies are appropriate & to understand how to maximize any benefits from their insurance cover.
The law is reforming. Whatever the final form of the legislation expected to come into effect, the accountability of owners & directors IS increasing and YOU need to be ready, with appropriate evidence of your efforts to meet your new obligations & appropriate insurance cover to support you if & when called upon.
The Health and Safety at Work Act is expected to be passed this year & come into effect on April 1st 2015 but it is appropriate to warn everyone; owners & directors are not free of obligations under the current law.
The recent conviction of Gloria Davis, director of the Easy Rider boat which sank in the Foveaux Strait, drowning eight people is a poignant reminder.
The changes have prompted all insurers providing D&O Liability & Statutory Liability insurance to keep a watching brief with the first signs of changes in pricing, capacity & risk appetite beginning to appear.
“At least one insurer is already amending the information it seeks as part of its underwriting process to include confirmation health & safety issues are being elevated to board level,” the briefing said. “Others are raising the issue as a reason for premium increases.”
Insurance cover for defence costs & reparations may be critical to a company’s risk management & personal protection for directors & officers, but even the best cover will still be limited to:
Key exclusions are:
- Payment of defence costs
- Payments for sentences of reparation following a conviction.
Any concerns or if you would like to discuss your insurance options please email or call us to set up an appointment on 03 548 2211 or email@example.com.
- Damage to reputation
- Willful misconduct
- Distraction from business