In most jurisdictions around the world, business managers have a duty of care to shareholders, employees and customers, to ensure they carry out their duties and communicate on corporate affairs ethically, legally, and accurately and in the best interests of their stakeholders. When they are perceived to have failed in these duties, they can become the target of litigation (including class action claims), employment tribunals, or regulatory or criminal investigations.
A range of insurance products exists that protect company directors, trustees, corporate officers and other managers from such liability, including:
Directors’ & Officers’ Liability
Employment Practices Liability
Warranties & Indemnities Insurance (for mergers and acquisitions)
In the increasingly litigious world of the 21st century, anyone with a duty of care to an independent stakeholder should consider buying appropriate insurance protection.