A EX LISTED Company Secretary writes...
We have for many years had a £1m limit of liability within our Directors & Officers insurance policy. The Board have recently questioned this and have asked if this level is sufficient. Whilst we have never claimed under our policy, the main reason we have kept it at this level is because it significantly impacts the costs, however I would be interested to find out what other companies have as their current limit.
We have recently increased cover from £20m to £35m, with an additional “Side A” layer for directors only, bringing total cover to £50m. This was recommended following a change of broker and they managed to reduce the total cost in the process.
Ours is capped at £50m.
For a smallcp PLC with a turnover of £150m and operating in Europe, Middle East, USA and Asia, we have recently increased our cover from £20m to £30m in line with our brokers’ advice.
We have £60m, – our market cap is £7bn though