Outside Directorships
As a business, the directors and officers of a property management company face the same corporate risks that any business in the UK would.
If this wasn’t reason enough for the Property Management company to purchase Directors & Officers insurance cover, then consideration should also be given to the additional risks that individual employees may face as a consequence of acting as a company secretary for a resident management company (RMC).
Whilst the title “company secretary” is now no longer a legal requirement, the functions of a company secretary remain. A property manager engaged by the RMC to fulfil those functions of a company secretary, is exposed to the same potential personal liabilities as any officer of the RMC would. The title “officer” is defined under company law and relates to the actions of an individual rather than his job title or description.
Whilst the individual RMC may purchase Directors & Officers cover, it is possible that not every RMC that the property manager acts for purchases cover. The level of cover may well vary if the cover is not purchased from the same source and this may be especially true for the limit of indemnity bought.
|
|
It is therefore prudent for the property management company to purchase its own Directors & Officers insurance cover and ensure that the policy has been extended to include Outside Directorship cover for the benefit of the individual property manager.
A Directors & Officers insurance policy would compliment any Professional Indemnity insurance arrangements. A Professional Indemnity policy will cover negligence for the property manager in his professional capacity. However in the event of an action brought against the board, because of another’s wrongful act, the Professional Indemnity policy would not respond but the Director’s and Officers policy would.
Residentsline are able to offer quotations for, Professional Indemnity, Resident Association Directors & Officers and Property Manager Directors & Officers including Outside Directorship cover.
Please call FREEPHONE 0800 281235 for more details or complete the enquiry form below and we will call you to obtain the required information.
|
|
