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Directors and Officer Liability Insurance – A Mandatory Cover

Since the introduction of the King III Report and Code of Governance and the introduction of the Companies Act in 2008, Directors and Officers Liability Insurance has been rendered crucial for all companies regardless of size or incorporation, and mandatory when a Board of Directors is assembled. What does Directors and Officers Liability Insurance cover? Wrongful acts such as breach of duty, error, omission, misstatement, sexual harassment, defamation, wrongful termination are typical areas of cover. The insurance protects the individuals personal assets, spouses, heirs and estates from claims against them for damages caused by a wrongful act. In addition, the policy will cover costs, charges and expenses incurred for defence of allegations of criminal acts, wilful misconduct, reckless trading and breach of trust.

Is your company in a product supply chain? The Consumer Protection Act affects you!

The new 2008 Consumer Protection Act came into effect in April 2011 and immediately companies could be held liable for loss or damages cause by their products irrespective of whether or not they are negligent. Prior to the new act, a consumer would have to prove that the person or business that they received the product from had been negligent following loss, injury or damage caused by the product. Under the new act, the consumer can choose where to go in the product supply chain to look for recourse, and is no longer required to prove negligence. Products Liability insurance has had to adapt – with the “no fault” clause being removed to cater for new claims where the insured’s client is not