A Director or Officer of a Private Company can face similar exposures of a Public Company Director or Officer. Any breach of these duties can result in a personal exposure and liability for them. Such liability can be incurred not only as a result of their own activities, but also from the activities of fellow directors.
Whilst the claims arising out of shareholder actions are generally less prevalent, actions from creditors, employees, customers and regulators are still commonplace.
Management Liability, primarily suited to the private business, provides a broader cover than the traditional (and often more expensive) Directors & Officers Liability Cover by including, amongst other things, cover for Crime and in a number of instances Tax Audit.
Given the complexity of this cover and the basis upon which it is issued, the right advice together with a properly constructed cover from an experienced broker such as Perrymans is critical.
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