Directors at creative agencies gambling with their personal liability
Let’s assume you’re an owner-managed agency, based in the UK. We sit down over a splendid coffee and go through what you insure
Before you speak, I’ll be certain you have Employers Liability, as you’re obliged to under law, and well, no one wants to get prosecuted.
I would also be pretty confident you have Professional Indemnity too, as its mandatory in so many contracts, and we all want to pick up the interesting projects
However, when it comes to Directors & Officers, I could roll a dice… and maybe that’s what some directors are doing
Whilst Employers Liability and Professional Indemnity protect the business, it doesn’t step in when the legal action is against an individual director or manager.
What if an investor, shareholder or even another director, claims financials have been misrepresented, or that the business has been run negligently, maybe even trading when technically insolvent?
What if an aggrieved party sues you in your professional capacity for making defamatory comments on a personal social media account?
Or even worse, what if a member of staff dies while working for you, or even kills someone. Maybe they’ve been working a little too hard for too long; exhausted they crash their car en-route to a pitch. Enter the HSE, a prosecution for failing to provide a safe system of work, and maybe even an action for manslaughter.
Imagine the cost of suitable legal counsel to defend you
D&O is not particularly expensive, costing hundreds rather than thousands of pounds.
Furthermore D&O is commonly incorporated into a suite of covers, called Management Liability, including other valuable areas, such as Employment Practices Liability and Corporate Legal Liability
When protecting your business, please don’t forget to safeguard yourself