What is D&O Liability Insurance?
Directors and Officers Liability Insurance cover protects Directors and Officers against claims arising from decisions and actions taken whilst managing their Residents Association/Company.
What are a Director’s Responsibilities?
The duties of a Director have been established through statutes, regulations and case law and can be broken down into three key areas:
- Duty of Care and Skill
Common law duty requires Directors to act with ‘the care an ordinary man would take in the same circumstances on his own behalf’ and with the skill expected from someone with their ‘particular knowledge and experience’.
- Fiduciary Duty
Directors must act honestly, in good faith and in the best interest of the company and must ensure that they do not have any conflict of interest.
- Statutory Duty
There are many statutes that affect the conduct of Directors and Officers including the Companies Act 1985, Environmental Protection Act 1990, Health and Safety at Work Act 1974, to name but a few.
Who is an Officer?
The definition of ‘Officer’ is wide and can include a duly appointed trustee, governor, governing committee or governing body member, or volunteer working for the Company (whether or not such person is remunerated). They are bound by the same key three duties that a Director is.
