Route of least resistance, in the event of an action against the Director or Officer of the business, the claimants legal adviser could also pursue the company itself – THE ENTITY
Directors & Officers Liability Insurance covers pretty much what it says on the tin, the Directors and the Officers of the company
The cover can be extended to include the Company itself (entity defence insurance) and would typically cover Corporate liability for Wrongful acts, Criminal Defense Costs (does not cover criminal acts), Defense Costs for Breach of Contract and more.
Directors and Officers Liability insurance needs to be paired with Entity
Directors and Officers Liability in isolation is fine, it covers the the key people in the business for wrongful acts, but without increasing the cover to include entity insurance is a wrongful act in itself, don’t do one without the other.
Entity Defence Insurance – what exactly does it cover?
Entity Defence is an extension of Directors & Officers Liability Insurance, it doesn’t usually come as a stand alone policy, in fact Directors & Officers and Entity go perfectly together, one covering the directors and the officers of the company and the entity extending to the limited company itself.
Whilst the cover provided varies between insurers, the key areas of the entity extension are
Corporate Manslaughter, Breach of Contract, Pollution, Taxation, Data Protection, Identity Fraud and Investigations
Does Entity Defence Insurance cost the earth
Surprisingly not, but this all depends on the insurer and how they rate it, some insurers will automatically include the cover under their standard Directors & Officers insurance policy, some charge between 20 and 30% and then there are the ones that add it it for a fixed rate depending on the turnover of the business.
Either way Entity Defence Insurance does not cost the earth
If you’re feeling a little exposed, you should be, give us a call and discuss your requirements, Entity Defence is a cover that certainly should not be missing from your policy.