If you’re a director of a motor trade business, you might want to consider Directors and Officers’ insurance.
This is because a director’s decisions and actions can result in losses for the company or a third party, and he or she can be held personally liable. Even just the costs of defending a claim in court could take a huge financial toll.
That is why we recommend D&O cover, especially if you have several employees. The cover, also called Management Liability, will provide personal asset protection for you and balance sheet protection for your company.
Why might you need D&O cover?
The most common claim against a D&O policy for a motor trader is employment practices. This is usually a disgruntled employee who brings action against their employer/former employer for unfair dismissal, failure to promote or discrimination in the workplace.
Others include legislative breaches such as failure to adhere to the Companies Act or the Health & Safety Act, among others, or alleged financial mismanagement of the company.
Who can bring an action against a director or officer?
- Employees, past and present
- Your customers
- Other directors
As you can see, that list is made up of pretty much everyone a motor trade business interacts with.
If you’re concerned about your exposure as a director, please call the Motor Trade team on 01732 872899 or email [email protected]