Insurance and Financial Solutions Since 1932


Are you leaving yourself exposed?

Tuesday, June 25, 2013
Management Liability protection exists to cover exposures faced by directors, officers, managers and corporate entities against lawsuits and claims. Consider the financial impact to you, your company and your family should you find yourself in a situation similar to the following real-life examples.

Employee deaths
Two employees were killed whilst attempting to repair dangerous machinery. The company’s managing director and several technical managers were prosecuted for breach of health and safety legislation. Defence costs were £890,000.

Disqualification for insolvent trading
Two directors knew that their company could not realistically avoid collapsing, but carried on trading. In the last two weeks before receivership the company incurred VAT liabilities of £50,000, which were never satisfied. For this insolvent trading, the directors were at first disqualified from being company directors in the future. On appeal the courts criticised the directors but decided they were not incompetent enough to deserve the ban, so lifted it. Defence costs to achieve this narrow escape are estimated at £100,000.

A small UK company was involved in building work in Normandy. One of its sub-contractors died from a fall at the site. A director of the company was prosecuted in France for manslaughter and incurred huge defence costs in understanding the foreign procedures and achieving acquittal.

A manufacturer employed a waste disposal contractor to dispose of old oil. Contrary to the manufacturer’s expectations, the contractor dumped the oil in a field and then became untraceable. The Environment Agency brought criminal proceedings against the manufacturers’ directors and considerable defence costs were incurred to achieve their acquittal.

Trade secrets
A director of a large training company was sued, along with his company, for allegedly misappropriating trade secrets. £700,000 was spent on defence costs and the case was settled for £1,400,000.

Dangerous goods
As a result of his company allowing dangerous goods to be carried by air, a director was investigated by the Civil Aviation Authority. Insurers paid legal representation expenses of £21,000 on his representation in that investigation.
(Source: Chubb Insurance Company of Europe – Claims Examples: Private Companies 18 June 2013)

To learn more about how we can arrange suitable cover to protect you, your directors and other officers of your company against your personal liability for such incidents please contact us today.
Post has no comments.
Please leave a comment

Captcha Image

Brunsdon is the trading name of Brunsdon Financial Services Ltd. (Reg. No. 03434005), Brunsdon Insurance Brokers Ltd. (Reg. No. 03433998), Brunsdon Asset Management Ltd. (Reg. No. 07098607) and Brunsdon Employee Benefits Ltd (Reg. No. 11021460). All companies are registered at Goodridge House, Goodridge Avenue, Gloucester GL2 5EA. Tel. 01452 623623 E-mail. Brunsdon Financial Services Ltd. and Brunsdon Insurance Brokers Ltd. are authorised and regulated by the Financial Conduct Authority. Brunsdon Employee Benefits Ltd is an appointed representative of Brunsdon Financial Services Ltd. The FCA does not regulate tax advice and some elements of Automatic Enrolment.

The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.

This site uses cookies to enhance your visit experience.  See our Terms of use to discover more about this.  I  Privacy Policy

Copyright © 2018 Brunsdon.      All rights reserved