The cover offered in 1st Sure’s Directors and Officers insurance is specifically designed for management companies, residents associations or RTM companies of blocks of flats. It protects against wrongful acts, errors or omissions in the management of the block of flats for which they are personally liable.
Directors and Officers insurance / Residents Association insurance includes loss and defence costs for the insured individual in defending an action brought against them and has limits of indemnity ranging from £100,000 to £1,000,000.
The cover can be extended to include the “entity” (ie. the management company, residents association or RTM company) providing reimbursements for any loss and defence costs as a result of a claim for a director’s or officer’s wrongful acts, errors or omissions.
The law does not distinguish between the director of a management company, residents association or RTM company and that of a major corporation and so directors of blocks of flats should be aware that they too can be held personally liable for their acts, errors or omissions. It is surprising how few directors protect themselves with a Directors and Officers policy, something that is best described as a “Should Have Cover”.
