This relatively new policy type has been born out of the growing common practice of seeking out and taking action against individual directors and officers rather than taking action against the firm itself
Directors in particular hold a duty of care as individuals to their employees and shareholders. They can also be pursued as individuals by organisations such as the HSE and HMRC where it is considered that the individual director or officer has been negligent in the pursuance of their professional duties.
The support of a D&O policy not only covers a range of risks but also covers the legal defence by specialist teams who deal constantly in this particular area.
What could an Executive Cover policy protect me against?
- Protection from claims made by investors and shareholders, holding an individual to account for their losses
- Protection against actions by government and regulatory bodies who pursue individual officers for acts of negligence
- Protection against claims made by employees or ex employees who take action against individual directors/officers for breaches of care of employment (e.g sexual harassment) or unfair dismissal etc.
- Crisis management, including corporate PR