Directors and officers 'must be diligent' - Directors' and Officers' insurance news
18/06/2008
It is important for company directors and officers to act with diligence, it has been suggested.
Jon Sutcliffe, partner at legal practice Kingston Smith, makes the assertion in an advice column for the Times.
His comments come in response to a query into the exposure a director could face following a decision which was taken in good faith.
Despite being neither reckless nor negligent, Mr Sutcliffe suggests that directors must "exercise their duties diligently".
"If you have a real concern about a specific board decision, then you should take independent advice," he contends.
"Your company could consider taking out Directors' and Officers' (D&O) liability insurance," he adds.
His advice follows warnings from insurance market Lloyd's of London that a greater number of D&O claims could arise in the coming months.
According to the organisation, both D&O and Professional Indemnity claims could become more prevalent due to disgruntled investors impacted upon by the credit crunch.
Click here for more information on D&O insurance from specialist Lloyd's insurance broker, PYV Limited.
PYV are also one of the UK's leading providers of professional indemnity insurance. Click here for more information on Professional Indemnity insurance from PYV.
This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.
(c) 2008 Adfero Ltd.
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