Overview: Offers executives protection from the financial consequences of their past, present and future actions. Cover includes defence costs against actions which could threaten their own personal assets and possibly lead to imprisonment.

Who is it for?: Companies with: Turnover less than or equal to GPB 10 million / No assets or turnover in North America / UK registered with Private Limited status.

The threat of personal litigation against the directors and officers of companies of all sizes continues to increase, yet many small to mid sized businesses are oblivious to their exposures. This could prove to be costly.

Directors and officers are exposed:

• Financially – they are personally liable for their actions. Potential litigants can include employees, creditors, customers, competitors and regulators
• Criminally - their liberty is at stake, and again, financially, the costs of defence can be high, sometimes reaching six figure sums
• Through Investigations - by regulators or trade bodies. An area of high financial risk for directors and one of the biggest triggers for claims in the UK
• To their own employees – for instance allegations of sexual or racial discrimination and with new laws on disability discrimination, directors could easily find themselves defending their actions, or inactions, at employment tribunals, as well as in the media
• Not just in the past, but in the future as well. Responsibility and liability for their actions remain with directors, long after they have left the company, even into retirement.
  

Given these trends and the threat of unlimited personal liability facing directors and officers, it is surprising that so few mid-market companies buy Directors and Officers Liability insurance. Businesses of all sizes are threatened.

AIG UK’s Directors and Officers Liability for SMEs offers executives protection from the financial consequences of their past, present and future actions. Cover includes defence costs against actions which could threaten their own personal assets and possibly lead to imprisonment.