Below are a small number of actions where the defence and awards costs were covered by a Directors Liability Policy.
Health & Safety: A driver has a serious accident whilst using a mobile phone in his company vehicle. The operations manager was held responsible for not ensuring his employees were following the proper procedures for mobile phone use.
Mergers & Acquisitions: Following takeover the acquired company’s shareholders commenced legal action against the former directors alleging they were misled about the terms of the acquisition.
Wrongful Trading: A creditor pursued three company directors alleging they had continued to take materials on credit knowing full well that the company could no longer meet its obligations and receivership was imminent.
Negligence: A Financial Director was asked by the board to exercise a break clause on a property surplus to requirements. He failed to action this instruction leaving the property on rent for a further five years at a cost of £400,000.
Health & Safety: Breaches of Health and Safety procedures resulted in an employee death. Several directors were prosecuted for unlawful killing by gross negligence.
Trading Standards: The directors of a manufacturing company were pursued for stamping safety glass that had not passed the necessary testing procedure.
Health & Safety: A fleet manager was prosecuted by the Crown Prosecution Service following injury caused by an accident involving a known un-roadworthy vehicle.
Negligence: A director failed to arrange death in service cover resulting in a corporate loss of £50,000.
Employment Practices: An employee takes action against a supervisor for harassment following receipt of Emails containing pornographic images. The directors were alleged to have not managed the supervisor effectively.
Environmental: The environment agency issues proceedings following pollutant spillage because of negligent premises management.
Slander: An allegation of slander was made by a customer of a retailer. Comments were allegedly made by a director that supposedly damaged the customer’s reputation.