Being a director of a residential property management company is a huge responsibility. This role makes you accountable for administrative duties and decisions regarding the property. Although a voluntary position, Directors and Officers will still be liable for any financial losses that may occur as a result of their negligence. Being covered within your block insurance policy is therefore vital. Here are 5 benefits of protecting yourself with Directors and Officers liability cover:
In the event of financial loss, Directors or Officers of the block may be sued by a resident or third party. Directors and Officers liability insurance, however, provides legal protection for the liability of individuals involved. This ensures they are not held accountable for any errors resulting in a fiscal loss.
Directors and Officers’ liability coverage is an inexpensive measure that prevents costly scenarios in the future. For example, should a resident or third party make allegations against you as Director of the block of flats, Directors and Officers liability insurance ensures you are protected. Although these claims are few and far between, when they occur, they can be very damaging. In comparison to other insurance for blocks of flats, a Directors and Officers liability cover is inexpensive.
For those new to right to manage companies, Directors and Officers liability insurance is a simple way to protect against wrongdoings of the previous Officer. This could include an omission of previous apartment block insurance or an error regarding block management. By investing in a Directors and Officer’s Liability cover, you can ensure you aren’t held responsible for the previous Director’s actions.
Being responsible for an RTM company means you are liable for any allegation towards the running of the property. Therefore, investing in Directors and Officers liability coverage is an effective preventative measure against having to engage in any time-consuming legal battles.
As a Director of a block management company, you can encounter a range of different situations. Regardless of which you find yourself in, you shouldn't forget about a Directors and Officers liability cover. This type of cover is the best way to give yourself the peace of mind that you are covered both legally and financially within your block insurance policy.