DIRECIORS & OFFICERS LIABILITY (D&O) AND
EMPLOYMENT PRACTICES LIABILITY (EPL) INSURANCE

D&O covers both legal costs and damages associated with the defence of a wrongful act committed by directors undertaking their everyday duties. In addition. D&O policies will pay investigation costs incurred by directors as part of regulatory investigations and, as a new development the costs and damages of directors and/or the company itself associated with EPL claims.

Corporate legislation that must be adhered to is both extensive and complex. The directors and officers of companies are expected to be familiar with all aspects of the Companies and Insolvency Acts and operate within their boundaries. Failure to appreciate the importance and consequences of such legislation could put the individual’s own personal assets at risk.

Such legal actions are potentially lengthy and costly. They may be brought against directors and officers from many sources such as shareholders, investors, insolvency practitioners and creditors.

The number and size of EPL claims, such as discrimination and harassment in the workplace, have been increasing for many years due to ever-expanding legislation and awareness. The cost of defending such claims can prove damaging to companies and their directors and officers, no matter what their size.