Directors & Officers

A Dangerous Hold-Up

Are directors prepared for the risk that lies with modern-day business dealings? 68% of participants were totally unaware of Directors & Officers cover, which is a concerning figure given the risks in today's business environment.

Some commentators argue that smaller firms face a higher likelihood of litigation than larger companies, because they have less stringent processes in place.

There is knowledge and awareness about the increased risks faced by business, yet the majority do not realise they can purchase cover that will protect them in the event of a claim.

The impact of the 'NatWest Three' - as well as the US administration's determination to come down hard on white collar crime - has struck a chord with thousands of UK directors whose companies have business dealings in the US.

Most businesses within the SME sector are not going to need multi-million indemnity limits, with around £500, 000 usually being sufficient. D&O cover is a very important issue at the moment. The business environment is changing, and companies of all sizes can now buy cover.

August 2007