Why do Directors & Officers need Cover?
People appointed as directors or officers of a block of flats management company hold positions of trust and must act accordingly.
Directors and officers without insurance are effectively risking their personal wealth, since the financial implications of a legal action can be disastrous.
Directors' and Officers' Liability insurance provides financial security which managers of flats need.
The policy covers the legal liability of the directors and officers for such matters as breach of trust, breach of duty, breach of contract, neglect, omission, misstatement, misleading statement, committed in their capacities as directors and officers.
Directors and Officers can be liable in the event of a breach of:
Fiduciary duties to the company
Duties of skill and care to the company
Duty to shareholders