CIOB `Director Plus` - Directors’ and Officers’ Liability Insurance Scheme

This type of insurance provides protection to directors and officers for claims made against them by reason of a `wrongful act` (meaning any actual or alleged breach of duty, breach of trust, neglect, error, misstatement, omission, breach of warranty, of authority or other act done wrongfully by any director or officer and related to their duties for the organisation they are employed by). The level of cover under the policy is on an annual aggregate basis and is inclusive of all legal costs and expenses incurred in defending any claim made against any director or officer. This means that there is a fixed amount of insurance to respond to all claims and defence costs made during any 12 month period of insurance.

The policy will also pay for defence costs related to certain criminal or regulatory charges, including a prosecution for breach of Health and Safety legislation.

The policy does not cover fines, penalties or punitive damages. The policy can, however, be extended to cover claims made against individuals when acting as pension trustees.

The policy will also repay the company where it has agreed to reimburse a director or officer in relation to a `wrongful act`.

The policy is arranged on a `claims made` basis. This means that it is the policy in force when a claim is made against a director which responds to that claim and not the policy in force when the act giving rise to the claim was performed. Consequently, to continue to be protected from previous activities the policy needs to be renewed form year to year. 

Most policies can be extended to cover employment disputes. 

The CIOB has, in conjunction with FRD Risk Solutions, the CIOB accredited insurance brokers, created an advantageous scheme for CIOB Members known as `CIOB Director Plus`.

The CIOB scheme provides a number of benefits to CIOB Members as follows:-

 

• Interest free premium installment facility via monthly Direct Debit

• Competitive premiums

• A 20% discount for organisations who subscribe to the CIOB Croner Health and Safety   Management System. For more information please visit www.Croner.co.uk/ciob and quote ref:   UQ/PO 32752

• A Simplified web based process for arranging cover. Please click here for more information.

 

The risk of claims being made against individual Directors and Officers involved in the construction industry will no doubt increase as a result of the Corporate Manslaughter and Corporate Homicide Act 2007 which comes into force on 06 April 2008.  This Act allows prosecutions to be made as a consequence of management failures which lead to the deaths of employees and third parties.

Examples of recent claims can be seen by clicking here.

A specimen policy wording can be viewed here.

A summary of cover can be viewed here.

 

 

 

 

If you would like more information then please either contact us or use our ciob enquiry form.

 

 

 

 

 

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