Closer regulatory scrutiny, increasingly transparent corporate governance procedures, business globalisation – these are just a few of the factors impacting the risks business directors face right now. And any manager with cross-border responsibilities is also exposed to the complexities of multi-jurisdictional litigation.

But it’s not only private sector business leaders who need coverage in this constantly changing environment. Public officials throughout the world have become aware that their duties and responsibilities – and thus their risks – are not very different to those of company directors.

The Risk

Being a director or an officer of a company can place individuals at high personal risk. Directors' personal liability for the legal and correct performance of their fiduciary duties to their companies is unlimited, but unlike companies, directors cannot hide behind limited liability - ultimately all of their personal assets are at risk.

Furthermore, directors are "jointly and severally liable" - the actions of one are the legal responsibility of all. Those in non-executive roles are equally liable. Some say that they are even more exposed in view of their limited involvement with the day-to-day business of the company.

If a company, shareholders, creditors or anyone believes that they have suffered a loss as a result of a wrongful act by a director, or they believe fiduciary or contractual duties have been contravened, they can sue no matter how spurious the claim or allegation may be.

In recent years, there has been a dramatic rise in the incidence of claims, and the trend continues upwards with the aid of a legal community that remains ever ready to advise would-be litigants.

The Solution

Howden provides Directors and Officers Liability products to clients from reputed insurance companies offering wide coverage and having experienced claims teams.

The Cover

Our policy includes protection for the directors and officers:

  • Of the insured
  • Of all subsidiary companies including those acquired or created during the period of the policy
  • Whilst on outside boards

We also provide extensions of cover for the following:

  • Civil sanctions
  • Official investigations
  • Crisis management
  • Risk management
  • Employment practices
  • Retired directors
  • Severability
  • Punitive and exemplary damages
  • Run-off cover
  • Entity Securities(for listed companies)
  • Additional limit for non-executive directors

Howden assists in providing one of the most comprehensive Directors and Officers Liability products in the market, designed to meet the needs of clients around the world.