Directors and Officers Insurance
PRODUCT INFORMATION
Travelers’ Directors and Officers Insurance has been designed to
protect the personal liability of individual directors and officers and
also to act as balance sheet protection for the company should
corporate liability cover also be purchased.
The insurance covers the defence costs, settlements and
judgements associated with claims received alleging a wrongful act.
Benefits
•
Broad, modular coverage – the modular
format of the wordings enables multi-line
covers to be packaged together under a
single policy number making cross-selling
easier
•
Fast and accurate indications and
quotations
The Companies Act 2006 places statutory duties on company directors in the United
Kingdom. Breaching these duties can make a director personally liable for damages,
criminal sanctions and expenses.
•
Access to a dedicated legal helpline to
provide your clients with access to
experts for legal issues
Many directors are unaware of the complex nature of the duties involved in their role
and their personal assets are at risk with every decision they make, every day.
•
Experienced underwriting team – enables
queries to be dealt with quickly and
knowledgeably
•
International capability – assisting with the
needs of more complex clients
•
Specialist in-house team of legally
qualified claims experts – for fast and
accurate claims response with the benefit
of many years of handling complex
financial lines claims
•
Financial strength – Consistently strong
independent financial ratings
Why is it needed?
Even if an entity doesn’t have shareholders, the directors are still at risk of claims from
customers, regulators, employees, suppliers and other stakeholders. If a company is faced
with a claim, defending it could be financially debilitating and can distract the directors
and officers from performing their day to day activities to the potential detriment of
the company.
Cover
•
Breach of duty - when a director or company has a duty of care toward another person or
company, but fails to meet the required standard
•
Breach of trust - any act which is in violation of a director’s duties as trustee
•
Employment practice violations – a breach of employment law
•
Misstatement / Misleading statement - a statement which misleads either deliberately or
inadvertently often in connection with financial statements
•
Breach of warranty of authority – a director creating an impression of an agency
relationship where one does not exist
•
Prosecution by regulatory agencies – where a director or a company are prosecuted for
failings in maintaining industry standard controls or procedures
Claims examples
•
•
A health & leisure club was sued by several shareholders for loss of value, after the club
announced a proposal to sell land and invest the proceeds in the business. The shareholders
argued that the proceeds of the sale should be distributed to shareholders. Costs of over
£25,000 were incurred in defending the claim
Minority shareholders sued the company for not accepting the highest offer that was made
in a take-over. The company defended its actions by saying that the entity making the
accepted offer was better for the long term interests of the company - despite this there was
still a valid claim and the company incurred large legal costs in defending the claim
For more information about Travelers’ range of insurance solutions please visit
travelers.co.uk or alternatively contact your local Travelers representative.
About Travelers
The Travelers companies, Inc. is a leading
provider of property liability insurance for motor,
home and business. The group has more than
30,000 employees and operations in the United
States, Canada, UK and Ireland, and a joint
venture in Brazil, under the brand JMalucelli
Seguros. The group generated revenues of
approximately USD$26 billion in 2012.
Our Europe based operations offer our
customers a wide range of coverage through
Travelers Insurance Company Limited; Travelers
Syndicate Management Limited (Syndicate
5000), which trades on the Lloyd’s market; and
Travelers Underwriting Agency Limited.
travelers.co.uk
Travelers Insurance Company Limited, Exchequer Court, 33 St. Mary Axe, London EC3A 8AG
Travelers Insurance Company Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Registered office: Exchequer Court, 33 St. Mary Axe, London EC3A 8AG. Registered in England 1034343.
The information provided in this document is intended for use as a guideline and is not intended as, nor does it constitute, legal or professional advice. Travelers does not warrant that the
information in this document constitutes a complete and finite list of each and every item or procedure related to the topics or issues referenced herein. In no event will Travelers or any of its
subsidiaries or affiliates be liable in tort or in contract to anyone who has access to or uses this information. Travelers does not limit or exclude any liability for death or personal injury caused by
its acts or omissions. This document does not amend, or otherwise affect, the provisions or coverage of any insurance policy or bond issued, nor is it a representation that cover does or does
not exist for any particular claim or loss under any such policy or bond.
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