Claim Examples
Below are a small number of actions where the defence and awards costs were covered by a Directors Liability Policy.
Mergers & Acquisitions: Following takeover the acquired company's shareholders commenced legal action against the former directors alleging they were misled about the terms of the acquisition.
Wrongful Trading: A creditor pursued three company directors alleging that continued to take materials on credit knowing full well that the company could no longer meet it's obligations and receivership was imminent.
Health & Safety: Breaches of Health and Safety procedures resulted in an employee death. Several directors were prosecuted for unlawful killing by gross negligence..
Health & Safety: A driver has a serious accident whilst using a mobile phone in his company vehicle. The operations manager was held responsible for not ensuring his employees were following the proper procedures for mobile phone use.
Health & Safety: A fleet manager was prosecuted by the Crown Prosecution Service following injury caused by an accident involving a known un-roadworthy vehicle.
Trading Standards: The directors of a manufacturing company are pursued for stamping safety glass that had not passed the necessary testing procedure.
Employment Practices: An employee takes action against a supervisor for harassment following receipt of Emails containing pornographic images. The directors were alleged to have not managed the supervisor effectively.
Slander: An allegation of slander was made by a customer of a retailer. Comments were allegedly made by a director that supposedly damaged the customer's reputation.
Negligence: A Financial Director was asked by the board to exercise a break clause on a property surplus to requirements. He failed to action this instruction leaving the property on rent for a further five years at a cost of £400,000
Negligence: A director failed to arrange death in service cover resulting in a corporate loss of £50,000