Insurance for
Directors and officers
Insurance for directors and officers across Devon, Cornwall and the UK.
Insurance tailored for you
Protect yourself with our leading directors and officers insurance plans
Why do you need insurance for yourself as a director or officer?
As a director or officer of a limited management company, right-to-manage company or residents’ association, you can be held liable for mistakes or oversights in the running of your company or association. Volunteering yourself to become a Director of the company that manages a block of flats has many advantages, but by becoming a Director of the company you could be exposing yourself to potential financial risk.
If you make a decision that causes a financial loss to someone, perhaps another leaseholder or a contractor, you could be personally financially liable. Or perhaps you unintentionally fail to comply with some regulations. Whether or not you are aware of them, you could still be personally liable for this failure.
Directors’ and officers’ liability insurance (D&O) is developed to protect you from potential personal liability and costs. Running a residential management company or similar organisation means that you have certain duties and responsibilities to the leaseholders. If you fail to carry out these responsibilities adequately, or if decisions made in good faith go wrong, you could be held personally liable.
The law makes no distinction between directors and officers of property management companies and commercial companies. So, if someone suffered a loss as a result of a wrongful act, error or omission by a director of your management company, and they took legal action against you, the directors and officers could be liable for the legal costs and any settlement.
You don’t need to have your building insured with LMB Insurance Services to take out a directors’ and officers’ liability policy with us. We’ll take care of all the paperwork and administration to make it easy for you.
By taking out a Directors’ and Officers’ insurance policy through LMB Insurance Services, you have the reassurance of a policy that has been specifically developed for Directors’ and Officers’ of Residential Management and Right to Manage companies. And because policies are developed for specific risks, they can be cost effective for the security they offer.
We are here to provide personal service, you will never be put through to a call centre. Call us on 01752 969 170 to speak to a broker today.
What can D&O insurance cover?
There are many reasons why you need insurance cover as a D&O. Our insurance policies can help you when difficult situations arise – here are the top 10 reasons why you need it, and situations where you may be able to claim.
- Litigation is on the increase – Directors of RMCs are usually volunteers who willingly give their time to help look after their block and their fellow leaseholders. Unfortunately, we live in an increasingly litigious society and in English Law directors of an RMC are treated exactly the same as the directors of a multi-million pound PLC.
- RMCs are just as vulnerable as large companies – RMCs are not exempt from D&O claims, they face exactly the same risks and regulations as larger companies, but don’t benefit from corporate legal teams – or bank balances to fund defending a claim.
- Your personal assets are at risk – If you are a director of an RMC ignorance of the law won’t protect you. If you are accused of breaching your duties, you may be personally liable to defend any claims. Your personal assets are potentially at risk if you do not have adequate D&O cover.
- Your fellow leaseholders could sue you – If the value of the properties in your block drop and it’s found that the reduction in value can be traced to a breach of duty by the directors, it may have serious financial consequences.
- Defending legal action can be costly – Legal costs for defending allegations against a company director can run into thousands of pounds.
- Investigations by regulators are getting more and more common – As a Director of an Residential Management Company (RMC) you are responsible for ensuring your block meets Health & Safety Executive guidelines. If a breach is discovered, you could be held personally liable and, in the worst case scenario if a fellow leaseholder or visitor suffered an injury on the premises, you may end up having to pay a fine or defend yourself in court.
- When estimates go wrong – If you order work to be done on the premises that exceeds the estimate, and there is no money in the management fund to pay it, as a company director you could end up having to pay for it yourself.
- D&O claims are not usually covered under any other liability policy – A common misconception is that alleged misconduct by directors or companies is covered under other liability policies – it may not be!
- D&O Insurance could be more affordable than ever – A D&O policy can cost from £120 per year for an RMC, yet the total cost of a D&O claim can run into thousands of pounds.
- D&O cover may be a small price to pay – Having D&O insurance in place offers peace of mind to the volunteer directors who give up their time to help run your block
Why choose LMB Insurance Services?
- A multi award-winning insurance broker based in beautiful Plymouth, Devon
- We pride ourselves on our exceptional customer service
- We deliver affordable and comprehensive insurance policies to suit your individual needs
- We are committed to only offering high quality products, primarily from leading insurance companies
- We believe in transparency and always act in the best interests of our clients
- We are here to provide personal service, you will never be put through to a call centre.
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Call us on 01752 969 170 and we will work to find the perfect business or property insurance deal
to suit your needs. Or visit our contact page for more ways to get in touch.