Residential Trustees
This cover is designed to protect the residents of a block of flats or property that have formed a management committee or Residents Assocation to oversee the running of their building and being members of the committee or assocation who act in the capacity as a Director, Trustee, Non Executive Director, Company Secretary or an Officer.
The residents in their capacity as a Director or Officer face numerous duties and responsibilities, some of which are defined in law (common law as well as the Companies Act, Insolvency Act and many more). These responsibilities include the need to ensure:
- The property is safe and any lifts are regularly inspected to meet statutory requirements (compliance with Health & Safety legislation)
- Any contractors used to carry out maintenance at the property, do so properly
- The finances are in order as the resident can be held personally liable for the debts of a company if “he knew or ought to have known that there was no reasonable prospect that the company would avoid going into insolvent liquidation”
Any resident taking a position of responsibility should know the liabiities they face especially as they can be unlimited.
Directors and Officers Liability insurance offers some protection against the costs of defending allegations of a breach of duty, but it won’t cover payments of fines or stop a jail sentence.
The limit of indemnity needs to take into account the cost of defending any allegations and the payment of damages if awarded. The minimum cover starts at £50,000 but limits of indemnity of £100,000, £250,000, £500,000, £1 million are also available. Higher limits can be purchased if required.
To receive a quotation or discuss your enquiry, please complete our Quotation Request Form or call us on 01206 838400 for one of our advisers to discuss your enquiry.
