While a standard Directors’ & Officers’ Liability policy does exactly what it says on the tin (i.e. indemnifying the Directors & Officers as individuals) many companies overlook the fact that one of the fastest growing areas of litigation for UK businesses arises out of Employment disputes. More importantly, disputes where the defendant is the company (i.e. the entity itself) and not any one individual director or officer.
In this instance companies may find their D&O policy offers them no protection at all and this is where the addition of specific Employment Practice Liability coverage can come into it’s own.
Cover would normally include (amongst other things) indemnity in respect of any actual or alleged:
Unfair, constructive or wrongful dismissal
Unlawful discrimination
Sexual, racial or disability harassment
Wrongful failure to employ or promote
Employment related libel, slander and defamation
Violation of an individual’s civil rights
Cover is normally afforded to any director, officer or employee (past, present and future) together with the Company (the Entity) itself.
In addition, the policy normally not only deals with the cost of any potential damages/awards but the legal costs of official investigations.
Towergate ghbc can advise on how this insurance could be integrated within your Management Liability programme.
Towergate ghbc is a trading name of Towergate Underwriting Group Limited and is authorised and regulated by the Financial Services Authority.
You can check our details on the FSA register (www.fsa.gov.uk/register) under Firm Reference Number 313250
