PARTNER PROFILE ZURICH
THE RIGHT
PROTECTION Zurich Insurance has the experience and products to help businesses protect their directors and professionals from potentially crippling losses.
A
t Zurich, we continuously strive to better understand our customers, to enhance and tailor products to meet their changing needs, and ensure that the very best protection is made available. Two areas experiencing significant growth is Directors & Officers (D&O) and Professional Indemnity (PI) insurance, designed to protect companies and their professional employees against risks that might not have been commonplace in the past. A recent survey carried out at a global level by Zurich Insurance Group showed that companies in Ireland, in particular SMEs, are now increasingly conscious of the risks posed by legal and fiscal problems, with nearly twice as many identifying the issue as a priority than did just one year ago. The increased awareness around this consideration can only be taken as a positive thing, as any company
While businesses are becoming more conscious of the issue, many are still unaware that, at any time, even years after work has been completed for a client, you could still be at risk for a claim for what might be deemed inadequate advice or service.
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which provides professional services or advice to clients is at risk of being liable for a potentially damaging claim. And while businesses are becoming more conscious of the issue, many are still unaware that, at any time, even years after work has been completed for a client, you could still be at risk for a claim for what might be deemed inadequate advice or service. This kind of claim could result in having to pay a significant court award and absorb the costs of a potentially protracted law suit.
EUROPEAN TRENDS The risk of legal and fiscal problems, according to the survey, is now seen as a greater threat in Ireland, than in almost every other European country, with the exception of Spain. While some high profile international companies have recently been held up as examples, it’s clear that any business, big or small, can feel the impact of a claim of this nature. Whether a director or officer of a company, it is increasingly clear that directors need to shield themselves from claims and legal costs with the right D&O cover, protecting against claims arising from the decisions you make while running the company. The right kind of PI cover protects professionals against the cost of compensating clients for loss or damage arising from either negligent
services or bad advice. If you’re a professional providing advice, such as an accountant or surveyor, you need the financial protection that PI cover provides.
IT’S PERSONAL A common misunderstanding amongst directors is that the corporate structures surrounding them will provide all the protection needed in the event of a lawsuit. This false sense of security, however, is in many circumstances shattered, when a business may not pay a director’s legal costs or be prohibited from paying under companies legislation. For example, when there are cases of unpaid corporate taxes or criminal charges. The end result can see a director being left personally liable, with a financially crushing impact on them, their personal assets and their families. A recent example involved an incident in which a building company employee died after falling through a roof at work. Following an investigation by the Health and Safety Authority, one of the company directors was charged with gross negligence manslaughter and convicted. The defence costs in this case totalled a175,000. D&O insurance will cover the legal costs of defending a director from a claim, and Zurich’s market leading cover can also be extended to include a company’s losses resulting from a charge of corporate manslaughter, where the company is sued alongside a director.
InBUSINESS | Q4 2016
21/12/2016 11:26