At a glance
- Directors and Officers (D&O) claims have increased four-fold in the past 10 years, yet less than half of SMEs in the UK have D&O cover
- An SME could easily end up having to spend tens of thousands of pounds defending itself, even from something it didn’t do
- We explore with Insurance Business why D&O should be considered
Directors and officers can be held personally liable for civil, criminal or regulatory proceedings should they fall short of their obligations, and their personal assets – such as cash, property and pensions – could all be at risk.
SMEs may not have the same sophisticated level of understanding of what their responsibilities are in line with the various legislations that are imposed on them, as perhaps large Plcs would. This could leave them exposed.
For smaller firms, who typically have fewer resources to defend allegations or fund potential fines, penalties or awards for damages, D&O is becoming an increasingly important cover for businesses.
Read the full article with Insurance Business.
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