Bosses play Russian Roulette with insurance

THOUSANDS of UK bosses are risking personal bankruptcy and prosecution when making everyday decisions by neglecting insurance cover.

Every day directors face claims as a result of their responsibility for activities such as health and safety, acquisitions and wrongful trading.

Under current legislation, a company has limited liability but a company director is automatically exposed at law to unlimited liability.

Martin Nugent at UK and Ireland Insurance Services said:

Too many bosses risk losing all their personal possessions including their home, savings, investments and car if a claim is made against them. The blame culture of today has made insurance more important than ever before. It’s not unusual for criminal charges to be made, Nugent warned.

The UK Companies Act of 1985 and 1989 gave rise to over 200 offences for which directors can be prosecuted. These include errors of judgement, unwise investment decisions and unauthorised payments.

Victoria Richardson - 0161 929 5194
Victoria@rmspr.co.uk