Why do I need D&O Liability Insurance?
- Residents
- Creditors
- Government and Regulatory bodies
- Employees (e.g. cleaners, gardeners)
- Auditors
- Suppliers
Current trends are now contributing to the once rare occurrence of a Director and Officers claim becoming increasingly commonplace. These include increased regulation, a greater understanding on the part of third parties of their rights and the duties and responsibilities of a Director.
Examples of claims
#1: Water ingress, due to a maintenance problem, caused significant water staining to a luxury apartment. The owner of the apartment was trying to sell his property and failed to complete due to the uncertainty surrounding the damp patches.
The claimant alleges that due to the director of the residents association's failure to provide any information or time lines for the necessary remedial work, he lost his sale and incurred costs in excess of £50,000.
#2. The management company of a block of flats had to redecorate the outside of their block under their maintenance programme. Those leaseholders with PVC window frames stated that they would not contribute to the cost of the windows as their windows did not need repainting and only those with wooden frames should meet the cost. The chairman agreed and the costs were allocated to those leaseholders with wooden windows. However one elderly resident's son challenged the allocation because it goes against the terms of the lease and successfully sued the chairman.
