Flat-Living.co.uk Insurance
Directors and officers: take cover Reading through articles in property magazines you are often prompted to review your insurance coverage to ensure you have sufficient financial protection in place should the unthinkable happen. But how often do you consider the risks associated with your role as an RMC director or committee member?
made, either as a company director or as an unpaid volunteer of a committee, club or association? What if there was no limit to the amount you could be held responsible for? It is an all too commonly held misconception that your role within
Y
a company or sitting on a committee as a volunteer is protected. Unfortunately, this is simply not the case. Your decisions and those of your fellow board or committee members could end up costing you everything you own. Explaining to your family that you have to sell your home because John Smith from number 32 is suing you, as a result of something you did or didn’t do in your unpaid position on the RMC, could make for an extremely unpleasant dinnertime conversation! You don’t even need to have done anything wrong to be faced with
legal costs. If you are accused of something that has no foundation, you may still have to take legal advice and defend yourself. If you have ever had dealings with a lawyer you will know that their professional services do not come cheap. All RMC directors should make it a priority to ensure that, having looked after everyone else, you now spend some time looking
ou may be familiar with running a company; you may even sit on a board of directors, content in the knowledge that if anything goes wrong the company will look after you and protect you. But what if your personal assets were at risk for every decision you
after yourself. Directors and Officers insurance coverage has been designed specifically to take care of these exposures and is widely available, offering broad coverage at a relatively low cost. Specialist underwriters are available to offer you this protection, so consult your broker for further advice and a quote before the time comes to have that mealtime conversation.
Gary Green
Business Development Director Angel Underwriting Limited
It couldn’t happen to me...or could it?
Directors of RMCs are under an obligation to take their responsibilities seriously and should ensure that they are insured to protect themselves against claims like these. • A leaseholder in a block of flats brought an action against the Residents’ Management Committee for failing to appoint a building company in a timely fashion to repair external brickwork on the building. Damage had been caused following a heavy rainstorm and reported to the committee. However, repair work had not been commenced several months later when a subsequent rainstorm caused further damage. • A Residents’ Management Company faced an allegation of wrongful termination after it fired an employee for gross misconduct. • A Residents’ Management Company director was sued when the building was devalued following the exterior of the property being painted an unusual colour. • A director of a property-owning company breached his authority in appointing a company belonging to a family member to undertake work on their behalf. Proceedings were issued by the claimant for non-payment of fees of £42,999, following cancellation of the contract. Don’t forget, claims can mean substantial costs being incurred,
which you may not have the funds to meet. Directors don’t have limited personal liability and without the right D&O cover, your personal assets could be at risk if you end up facing a costly claim.
16
www.flat-living.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56