As a company director, are you aware of the potential risks that could affect your personal assets? At Champion Professional Risks, a specialist division of Champion Insurance Group, we offer tailored insurance solutions to protect directors from the personal liability that comes with running a business.

Understanding Directors’ Personal Liability

A common misconception is that once a company is incorporated, its directors are automatically shielded from personal financial consequences. Unfortunately, this is not the case. While a company structure limits certain liabilities, directors can still be held personally responsible for a range of decisions. In fact, a director’s liability is often unlimited, meaning that personal assets could be at risk in the event of legal action.

Common Allegations Against Company Directors

Directors face a variety of legal risks stemming from their day-to-day decisions. Some of the most common allegations include:

• Breach of duty
• Negligence
• Errors or omissions
• Misfeasance
• Misstatements

In addition, directors can face statutory exposures under a variety of laws, including:

• Companies Act (with over 200 offences)
• Insolvency Act (including wrongful trading)
• Health & Safety at Work Act
• Data Protection Act

Expanding Sources of Risk

In today’s business environment, the sources of potential claims are widening. Directors are increasingly facing allegations from regulatory bodies, the Health and Safety Executive, employees, creditors, shareholders, customers, suppliers, and even lenders.

Protecting Yourself with Directors and Officers Insurance

The good news is that Directors and Officers (D&O) Insurance, also known as Management Liability Insurance, is available to protect against these risks. Originally developed in the USA, a nation known for its litigious environment, this type of insurance has been a vital tool in the UK for several years.

D&O insurance provides cover for personal liability arising from the decisions made in a director’s professional capacity. This type of protection is essential for safeguarding personal assets from legal action or claims that may arise in the course of running a company.

How Champion Professional Risks Can Help

At Champion Insurance Group, we have been arranging Directors and Officers Insurance for over a decade. With access to a wide range of UK-based insurers, we offer bespoke solutions tailored to your unique needs. Our expert team is dedicated to ensuring that your personal assets are well protected, so you can focus on leading your business with confidence.

Get in Touch Today

To learn more about how Directors and Officers Insurance can protect you, contact us today:
John Jones
Divisional Managing Director, Champion Professional Risks
T: 03330 430 430
E: jjones@ChampionInsure.co.uk