Directors & Officers Liability

The Directors’ and Officers’ Insurance that you receive as part of your NHS Membership is sufficient to protect you against most eventualities. There are however, some circumstances in which additional protection may be desirable.

The current National Housing Federation (NHF) Directors’ and Officers’ Liability policy provides a limit of indemnity for your organisation of £5,000,000 any one claim, with an aggregate limit of £30 million for all claims made during the insurance year (which runs from 1 April).

Whilst this provides a significant level of protection to NHF Members, the application of the aggregate limit means that if a sector wide incident were to occur, it is conceivable that the limit could be exhausted, leaving you with no cover. As a result, we recommend that you consider buying a Contingent Policy, which will provide you with an exclusive limit of indemnity that cannot be eroded by claims made by any other NHF Member.
Contingent cover can be purchased for limits of £1,000,000, £2,000,000, £5,000,000 or £10,000,000.

The NHF policy and the Contingent Policy are designed by FARR and dovetail together. The Contingent Policy Provides cover in three distinct areas:-

a. Should the NHF aggregate limit be exhausted by claims made by other NHF Members, the Contingent Policy will drop down to act as a primary policy and will provide cover up to the limit chosen.
b. Should you suffer a major claim, the Contingent Policy will increase the £5,000,000 any one claim cover by the limit selected – e.g., if a Contingent Policy is purchased with a limit of £2,000,000, the total cover available for any one claim will be £7,000,000.
c. The Contingent Policy provides a further limit of £1,000,000 which is only available to individuals and cannot be eroded by claims made against the Entity (the corporate NHF Member).
 

Directors & Officers Liability

The Directors’ and Officers’ Insurance that you receive as part of your NHS Membership is sufficient to protect you against most eventualities. There are however, some circumstances in which additional protection may be desirable.

The current National Housing Federation (NHF) Directors’ and Officers’ Liability policy provides a limit of indemnity for your organisation of £5,000,000 any one claim, with an aggregate limit of £30 million for all claims made during the insurance year (which runs from 1 April).

Whilst this provides a significant level of protection to NHF Members, the application of the aggregate limit means that if a sector wide incident were to occur, it is conceivable that the limit could be exhausted, leaving you with no cover. As a result, we recommend that you consider buying a Contingent Policy, which will provide you with an exclusive limit of indemnity that cannot be eroded by claims made by any other NHF Member.
Contingent cover can be purchased for limits of £1,000,000, £2,000,000, £5,000,000 or £10,000,000.

The NHF policy and the Contingent Policy are designed by FARR and dovetail together. The Contingent Policy Provides cover in three distinct areas:-

a. Should the NHF aggregate limit be exhausted by claims made by other NHF Members, the Contingent Policy will drop down to act as a primary policy and will provide cover up to the limit chosen.
b. Should you suffer a major claim, the Contingent Policy will increase the £5,000,000 any one claim cover by the limit selected – e.g., if a Contingent Policy is purchased with a limit of £2,000,000, the total cover available for any one claim will be £7,000,000.
c. The Contingent Policy provides a further limit of £1,000,000 which is only available to individuals and cannot be eroded by claims made against the Entity (the corporate NHF Member).
 

Call our Development Department today on 0845 129 8042 for further information or email development@farrinsurance.co.uk

Call our Development Department today on 0845 129 8042 for further information or email development@farrinsurance.co.uk