Married Couples in Business and D & O Cover...
4th November 2010
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As a business owner you may be questioning whether the continued value of Directors and Officers Insurance is needed especially if business is still slow following the recession:

A local Husband and Wife team equally owned a highly successful contract cleaning company. Everything in the garden was rosy, until the couple fell out and following a messy divorce; the suspicious wife accused her husband of deliberately mismanaging the company finances to distort the true worth of the business.

This is commonly known as a Director vs Director action and is on the increase as business pressures mount in today’s uncertain times.  On this occasion the total defence costs amounted to £75,000 and were recovered under the Directors and Officers Insurance policy.

Directors, officers and senior managers of businesses can be held responsible for a number of issues including:

·         health and safety

·         data protection

·         maintaining satisfactory accounts

·         fraud

·         negligence

If your business' directors or officers are found to have acted wrongfully and this gives rise to a claim, then compensation and legal fees will be covered by directors' and officers' liability insurance.  However, if the act was deliberate it may not be covered by the policy.

About the Author

Alison C

Member since: 9th December 2011

Local, general Insurance Brokers in Hampton Hill High Street, open Monday to Friday.

Chat to Cheers' about Household Insurance, Property, Business, Motor Fleet, Travel and Boat Insurance. We can usually...

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