Should Santa buy Directors & Officers Insurance?

Over the coming months, we at GG Insurance Services will be writing guides for each various type of insurance to help clarify how they work and if they are relevant to the games industry

We also have a special offer available, by using discount code UKIEMAS, developers and publishers will receive a 7.5% discount to UKIE members and a 2.5% discount to non-members off our usual insurance package price. *

You can apply for a quote at our website here: https://www.gginsurance.net/

 

Directors & Officers Insurance

What is it

Directors & Officers Insurance is a liability insurance for the directors and officers of a company. While companies are protected by their liability insurance, Directors and Officers may be personally liable for their actions and omissions and could be subject of claims which can lead to payment of fines and compensation

What this means in practice

Many people mistakenly believe that as a director of a limited company, they are protected by this and have no personal liability regarding their corporate actions – however they may still be sued in a personal capacity and would need to respond to the lawsuit.

Broadly speaking, personal claims or proceedings against directors or officers can arise from any decision made, or act carried out, in the workplace however innocuous it may have seemed at the time.

Claims range from frivolous and occasionally malicious claims made by disgruntled customers who weren't happy about the service they received, all the way through to official investigations.

If we use Santa as an example, if a product he delivered was faulty, even though his company “Elf Co” may have produced it, he could easily be the target of a lawsuit as an individual.

As the company director, I am confident I will not make any mistakes, and this will not be an issue…

It is important to note that while the legal definition of a director is reasonably clear, the legal definition of an officer is vague enough to allow claims or proceedings to be issued against people in almost any managerial or supervisory position.

So while you may be confident that all of your company's directors are aware of their legal responsibilities, it is vital to understand that problems can be caused inadvertently by individuals at many levels of an organisation.

 

How much should I buy

Most insurers offer minimum cover of around £500,000. For many cases this may be adequate, however if you and your business are involved in any larger deals or transactions, you may want to consider higher limits. It will depend on your role within the company and the level of your (or other officers) decision making authority.

When purchasing, you must ensure you are covered for your specific company operations (i.e. in the Games Industry). As the risk to an insurance company would be different to cover a game developer versus a normal software company.

If your company activities are incorrectly listed on your policy schedule, it may be held against you in the event of a claim, which is why it is critical to buy cover through companies where your operations are fully understood.

 

Where to get it

You can apply for a quote at our website here: https://www.gginsurance.net/

GG Insurance Services provide expert protection for the Games Industry, and insurance policies that cater for your individual needs.

All our team are qualified to give advice and we always present clients as many options as we can and talk it through with them to make sure they are making an informed choice, understand what they are covered for, and are comfortable with the price.

This industry moves quickly, and we appreciate insurance is not always at the forefront of people’s minds; we therefore check in regularly with our clients to make sure their policies are adequate and up to date on an ongoing basis.

We pride ourselves on our passion and understanding of this industry. We take a very proactive approach to our own learning and understanding as the industry constantly changes and believe it is crucial that any broker representing a Games Industry client understands not only how the insurance works but the games industry itself.

We also have a special offer available, by using discount code UKIEMAS, developers and publishers will receive a 7.5% discount to UKIE members and a 2.5% discount to non-members off our usual insurance package price. *

*This is not a promise to beat existing insurance, but a discount on our own products provided through GG Insurance Services. Offer valid until 31st January 2020. For any questions contact phil@gginsurance.net