Safety at work, working from home, employment law, contract disputes, Covid… the risks directors are exposed to are only increasing
Board members and senior decision makers are exposed to personal financial risk through their decisions in running the organisation.
Being a director or officer of a business comes with advantages – driving growth, creating a legacy, leading your people, but with great power comes great responsibility – and accountability. Directors’ and officers’ insurance (D&O) can provide protection for claims made against anyone in or acting in a managerial role for alleged wrongful acts carried out in their various roles in the work place.
Typical business insurance protects the company, but doesn’t protect the individual. That’s where directors’ and officers’ (D&O) cover steps in. D&O protects the private wealth of individuals against claims made against them personally, not the company.
Businesses are facing new and emerging risks:
Cyber-crime— Directors and officers could be blamed for not ensuring that proper cybersecurity measures were taken,
Workplace misconduct — directors and officers may face prosecution for failing to provide employees with a safe working environment.
Environmental issues— Leaders could be suspected of contributing to global warming, causing an environmental incident or breaching climate-related regulations.
Lack of diversity—Many organisations have already been targeted with legal action alleging that leadership has not done enough to encourage and increase diversity in the workplace.
Insolvency— With the predicted economic struggles, insolvencies could result in claims being filed as plaintiffs attempt to recoup losses from directors.
Business leaders juggle multiple risks on a daily basis. Ensuring you understand the risk will enable you to mitigate, manage and transfer those risks (via the right insurance), allowing your business to grow and prosper.
