The media and many, many clients are currently giving the insurance industry a hard time. When you reflect on many commonly held perceptions about insurance then it is easy to understand why.
Clients purchase insurance for those “out of the blue” unthinkable events that arise, and surely this current crisis is the very definition of such an event. It will be interesting to see how those actions against insurance companies get on. I use the work unthinkable because this pandemic, and everything that has come with it hasn’t happened before in living memory.
Is anyone bothering with insurance now, given that it is perceived to have let us down so badly?
I am here to provide some good news. I have watched my clients make tough leadership and management decisions within very short timeframes over the last month. Intentions are good and their actions have been the right ones for their businesses. However, what if in a year’s time the Government, HMRC, the Health & Safety Executive or any number of local government agencies decide that these were bad decisions for the individuals concerned, the business or the community at large? Where will those businesses stand?
A Directors & Officers Liability or Management Liability policy is designed to help and perhaps give some peace of mind right now. This insurance protects a business and its directors personally for anything deemed to be a “wrongful act” by any of the organisations I have mentioned, or other stakeholders. It doesn’t need to be a successful action; the policy is there to defend you or your business for the decisions it makes.
For example, we know that the lockdown is proving to be tough on people’s mental health. Can it be argued on that basis that furloughing an individual, or worse, furloughing an individual to a small flat with no outside space was a good decision?
Businesses are having to make tough, often wide-ranging decisions in real-time, without the luxury of anyone being able to predict what the outcomes may be. Insurance is there to protect and mitigate against whatever may happen next.
Like it or not, insurance may be the only certainty you have right now. Check what cover your policy gives you and consider getting advice on additional protection, so you have one less thing to worry about.
If you need advice, please give me a call.
Managing Director | Sona Insurance Brokers Limited
IoD member Rob Thacker has been working with businesses for 30 years giving practical insurance and risk management advice. He has worked for a wide range of brokers over the years and now runs his own brokerage. He believes exceptional service can only be delivered by a dedicated values-driven team who take the time to understand their clients.
M: 07498 482289 T: 01787 223166