What you need to know if you’re a business owner

Even the most experienced directors and executives can be vulnerable when it comes to being sued for oversights, or decisions or actions taken while carrying out the course of regular duties.

Last year liability insurance claims came to a whopping $100 million in New Zealand.

Running a business means it’s critical to have the room to make important decisions but if you don’t have the right insurance protection in place, you could be leaving both yourself and your business exposed.

If a claim is made against you or one of your directors or senior executives, a Directors & Officers liability policy will pay for your defence costs and any damages payable. Directors & Officers insurance supports good corporate governance and makes the risk of decision-making manageable. 

Some common Directors & Officers insurance claims we see are directors and senior executives being personally sued for advice they have given; employee related defamation claims; and wrongful termination of employee contracts.

Having the right liability insurance to get you through a legal battle, and cover litigation and damage costs, provides financial security as well as peace of mind.

Another thing to consider as a business owner is the potential risk involved in running a service or consultancy based business that provides advice, designs or services to clients.

A Professional Indemnity liability policy is tantamount to a Directors & Officers policy but will help protect your business against allegations of professional negligence.

If you’re an Accountant for example and you forget to lodge your client’s tax return by the due date and that client is charged thousands of dollars in late fees – you could be held liable for those costs.

Professional Indemnity is there if you or one of your employees makes a mistake or something goes wrong and someone accuses you of causing them damage or financial loss because of something you said or did.

Whatever type of company you own, your broker can work with you to get the best liability solutions - so you can focus on business.