11 Feb Why Business Liability Insurance Matters for Directors
Why Business Liability Insurance Matters for Directors
Business liability insurance is an essential component in the armoury of any business that is serious about its legal responsibilities, long-term future and immediate protection.
These considerations have been given new weight by the findings of a study recently reported in the pages of Business Insurance UK.
It says that business leaders in Britain are today more vulnerable to business liability insurance claims than at any time before.
The study questioned 2,500 business owners and managers from the five major European Union economies –the UK, Germany, France, Italy and Spain – and found business liability insurance pressures to be a major and growing concern.
For example, seven in ten said that they have had to cope with an increase in the scope of their responsibilities during the past twelve months, more than two in ten have faced a business liability insurance claim during the term of their current role, and more than three in ten have significant concerns about facing a business liability insurance claim in the future.
These concerns are reflected in the insurer landscape, with many business insurance companies reporting rises in the number and value of claims made against company directors and senior leaders.
Enhanced regulation and an increased tendency towards litigation are perhaps two of the reasons why businesses are currently feeling the pressure, but the single largest factor of all may be that the United Kingdom has a much stronger culture of accountability than ever before.
Employees, shareholders, consumers and all other parties are today much more educated about their rights and are more likely to seek redress in the event they feel these have been infringed in any way.
Do you have enough cover?
It is sometimes tempting to underestimate the potential cost impact of damages proceedings. If the cost exceeds the limit of indemnity cover, directors or senior leaders may find that they themselves become liable. It is essential that your business liability insurance is fit for purpose.