Question 1

What amount of D&O cover do you recommend?

Accepted Answer

Do you consider Directors and Officers liability insurance necessary, and if so what amount of cover do you recommend? The FPRA replies: I see that you have 100% participation and self manage. In such circumstances your risks are relatively small, but it is still important that you maintain cover, especially with the raft of legislation and paperwork with which you must comply. To decide the limit you should insure for you should be looking at what you maximum likely claim is going to be taking into account not only legal costs but the fact that Director’s and Officer’s claims by their nature often take several years to settle. I would be surprised if there was any need to insure for more than the £1m that you currently have and it may well be that a limit of £1/4m or £1/2m is adequate. You might also consider what the differential in premium is between these as quite often there is very little difference in premium between these limits because the insurers are well aware that the likelihood of a bigger claim is much reduced as most claims are dealt with within the first £1/4m.

Question 2

What amount of D&O cover do you recommend?

Accepted Answer

Do you consider Directors and Officers liability insurance necessary, and if so what amount of cover do you recommend? The FPRA replies: I see that you have 100% participation and self manage. In such circumstances your risks are relatively small, but it is still important that you maintain cover, especially with the raft of legislation and paperwork with which you must comply. To decide the limit you should insure for you should be looking at what you maximum likely claim is going to be taking into account not only legal costs but the fact that Director’s and Officer’s claims by their nature often take several years to settle. I would be surprised if there was any need to insure for more than the £1m that you currently have and it may well be that a limit of £1/4m or £1/2m is adequate. You might also consider what the differential in premium is between these as quite often there is very little difference in premium between these limits because the insurers are well aware that the likelihood of a bigger claim is much reduced as most claims are dealt with within the first £1/4m.

What amount of D&O cover do you recommend?

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