Individual Director’s Liability Insurance
Introduction
This document contains:
•
“status disclosure” about Quantum Underwriting Solutions Ltd and the Institute of Directors
•
information about Chubb Insurance Company of Europe SE
•
a statement of demands and needs
•
information about Chubb Insurance Company of Europe SE’s Individual Director’s Liability Insurance (v8.1 Form)
•
a statement of price
•
information about your right to cancel
•
a data protection notice
•
information about choice of law and language.
In this document:
•
“Chubb” means Chubb Insurance Company of Europe SE
•
“Quantum” means Quantum Underwriting Solutions Ltd
•
“IoD” means the Institute of Directors
•
“You” and “your” refers to a person who buys the Policy.
Warning
It is important that, when applying for an Individual Director’s Liability Insurance Policy, you tell Quantum all facts which are
material to the insurance. Failure to do so could invalidate the insurance. A material fact is one which might influence Chubb in
deciding whether to accept your application or on what terms to insure. If you are in any doubt as to whether a fact is material,
then you should disclose it to Quantum. You should keep a record (including copies of all letters and forms) of all information
supplied to Quantum.
About Quantum Underwriting Solutions Ltd and the Institute of Directors
For Individual Director’s Liability insurance, Quantum only offers Chubb’s Individual Director’s Liability Insurance. You will not
receive advice or a recommendation from Quantum or IoD to buy the product. You will need to make your own choice about
whether to buy it.
In the normal course of business Quantum receives income as commission paid to Quantum by Chubb.
If you buy an Individual Director’s Liability Insurance Policy, Chubb will charge you a premium as shown in the Statement of
Price below. There is no other fee that Chubb, Quantum or IoD charges.
With regard to Individual Director’s Liability Insurance, Quantum is an Appointed Representative (as defined in the Financial
Services and Markets Act 2000) of Stackhouse Poland Limited. The Institute of Directors, whose registered office is 116 Pall
Mall, London, SW1Y 5ED, is an Introducer Appointed Representative (as defined in that 2000 Act) of Stackhouse Poland
Limited.
The Financial Services Register number of Stackhouse Poland Limited is 309340. You can check this on the Financial
Services Register by visiting www.fca.org.uk/register/ or by calling 0800 111 6768.
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About the insurers, Chubb Insurance Company of Europe SE
Chubb Insurance Company of Europe SE is a European company registered in England and Wales with company number SE13,
whose registered office is at One America Square, 17 Crosswall, London, EC3N 2AD, United Kingdom (Tel 020 7956 5000).
Chubb is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential
Regulation Authority.
Chubb is listed on the Financial Services Register under registration number 481725. You can check this on the Financial
Services register by visiting www.fca.org.uk/register/ or by calling 0800 111 6768.
Chubb’s Complaints Procedures
Full details of Chubb’s complaints procedures are available on request (Tel 020 7956 5000).
Chubb is committed to providing a first class level of service at all times, but recognises that occasionally things can go wrong. If
you wish to make a complaint, please write to The UK and Ireland CSI Manager, Chubb Insurance Company of Europe SE, One
America Square, 17 Crosswall, London, EC3N 2AD.
If Chubb cannot resolve the complaint to your satisfaction, you may be eligible to refer the matter to the Financial Ombudsman
Service. The contact details for the Ombudsman are: Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall,
London, E14 9SR.
Tel: 0800 023 4567
Financial Services Compensation Scheme
Chubb subscribes to the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if
Chubb cannot meet its obligations. This depends on the circumstances of the claim. Further information about compensation
scheme arrangements is available from the Financial Services Compensation Scheme, the contact details of which are:
Financial Services Compensation Scheme, 10th Floor, Beaufort House, 15 St Botolph Street, London EC3A 7QU.
Tel: 0800 678 1100 (freephone within UK only) or 00 44 (0)20 7741 4100.
Statement of Demands and Needs
Chubb’s Individual Director’s Liability Policy is for the demands and needs of:
•
directors and officers of UK, Guernsey, Jersey or Isle of Man companies (but not companies which are publicly traded on a
stock or securities exchange);
•
members of UK limited liability partnerships formed under the Limited Liability Partnerships Act 2000; and
•
expressly appointed trustees, or directors or governing body members, of UK, Guernsey or Isle of Man charities,
who wish to be protected against:
•
claims and proceedings against them for wrongful or criminal acts and omissions in their capacity as director, officer,
member, trustee or governing body member by providing defence costs for such claims and proceedings and protecting
against the cost of judgments and settlements (but not fines, penalties or taxes); and
•
formal investigative inquiries into their conduct, in their capacity as director, officer, member, trustee or governing body
member by governmental, regulatory, professional or statutory bodies, by providing legal representation fees.
This is subject to exclusions set out in the policy and the total amount payable under the policy in each year (regardless of how
many claims and inquiries happen in the year) is £1,000,000 or £2,000,000, depending on which amount you buy when you
buy the Policy.
About Chubb’s Individual Director’s Liability Policy (v8.1 Form)
This section does not contain the full terms and conditions of the Policy. The full terms and conditions are in the policy booklet
and the Schedule issued with it.
The Policy insures you in respect of those UK, Guernsey, Jersey and Isle of Man companies, those UK limited liability
partnerships (“LLPs”) formed under the Limited Liability Partnerships Act 2000 and those UK, Guernsey and Isle of Man
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charities for which you buy the Policy. “Directorship Organisation” is used below to refer to such a company, LLP or charity.
“Member” means member of an LLP and “Trustee” means expressly appointed trustee, or director or governing body member,
of such a charity.
See “New Positions” below for how to extend the Policy to include further organisations subsequent to taking the policy out.
The Policy protects you against claims and proceedings (both civil and criminal and including extradition proceedings) for
wrongful or criminal acts and omissions by you in your capacity as director, officer, Member or Trustee of a Directorship
Organisation. It does so by paying:
•
your reasonable costs of defending;
•
if you lose, the amount of the judgment against you;
•
if you settle, the amount of the settlement.
It pays these costs, judgment amounts and settlement amounts once you have used up all your rights to have them paid by a
Directorship Organisation or any other party. However, such rights shall be deemed used up if that Directorship Organisation or
other party cannot pay you because of its insolvency.
The Policy also protects you against formal investigative inquiries by governmental, regulatory, professional or statutory bodies
into your conduct in your capacity as director, officer, Member or Trustee of a Directorship Organisation. It does so by paying
your reasonable costs of legal representation in such inquiry. It pays those costs once you have used up all your rights to have
them paid by a Directorship Company or any other party. However, such rights shall be deemed used up if that Directorship
Company or other party cannot pay you because of its insolvency.
The Policy is on a “claims-made basis”. This means that the claims, proceedings and formal investigative inquiries protected
against are those first instituted between the start of the Policy and termination of the Policy.
The time during which you have the Policy is divided up into “Policy Periods”. The first year and each successive year thereafter
(or part-year in the case of the year during which the Policy is terminated), each makes up one “Policy Period”.
The total amount payable under the Policy for each Policy Period is £1,000,000 or £2,000,000, depending on which amount
you buy when you buy the Policy. This £1,000,000 or £2,000,000 is the total payable regardless of how many claims and
inquiries happen in the Policy Period and regardless of how many Directorship Organisations there are – it is not £1,000,000 or
£2,000,000 per claim, per inquiry or per Directorship Organisation.
If a claim against you is also against one or more other parties, Chubb shall only pay that part of your liability for which you are
not entitled to contribution from those other parties.
The Policy also provides compensation for time occupied in attending a court or arbitration hearing, in being interviewed for a
witness statement or in attending a meeting with a barrister. The total amount of such compensation payable for each Policy
Period is £5,000. This £5,000 counts towards the £1,000,000 or £2,000,000 referred to above.
It is not in addition to that £1,000,000 or £2,000,000.
Exclusions
The Policy does not pay matters uninsurable under English law, fines or penalties imposed by law or taxes (see the definition of
Claim Loss in section 4 of the Policy).
See section 5 of the Policy for exclusions and their precise wording. The policy does not cover you for claims, proceedings or
formal investigative inquiries:
•
arising from circumstances notified under any other policy prior to the Start Date
•
seeking legal remedy for personal injury or property damage (but this exclusion does not apply to defence costs in a
criminal proceeding for manslaughter or for any other offence)
•
seeking legal remedy for pollution
•
arising from your dishonesty, fraud or intentional breach of law
•
arising from any personal profit, remuneration or advantage to which you were not legally entitled
•
arising from a failure to perform, or act or omission in the performance of, professional services
•
seeking legal remedy under insolvency law or arising out of a Directorship Organisation’s insolvency (but Chubb will pay
defence costs up to £100,000* for each Policy Period; this £100,000* counts towards the £1,000,000 or £2,000,000
referred to above; it is not in addition to that £1,000,000 or £2,000,000)
•
arising from any public offering of shares, debts or other securities in a Directorship Organisation
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•
seeking legal remedy for, or alleging liability under, a guarantee or contract except for such amount as you would be legally
and personally liable to pay in the absence of such guarantee or contract
•
brought or maintained, in whole or in part, in the United States of America.
(*£200,000 if the total amount payable under the Policy for each Policy Period is £2,000,000)
If a Directorship Organisation becomes admitted for public trading on a stock or securities exchange, your cover in respect of
that Directorship Organisation shall continue while the Policy continues. However, in relation to that Directorship Organisation,
the Policy will not cover you for claims, proceedings or formal investigative inquiries relating to your acts, omissions and
conduct after it became admitted.
If a Directorship Organisation which is a charity ceases to have charitable status, your cover in respect of that Directorship
Organisation shall continue while the Policy continues. However, in relation to that Directorship Organisation, the Policy will
not cover you for claims, proceedings or formal investigative inquiries relating to your acts, omissions and conduct after it
ceased to have charitable status.
Duration of Policy
The Policy continues until it terminates in accordance with the provisions of its section 19, which provides that it terminates at
the earliest of:
•
you failing to pay premium when due
•
Chubb receiving written notice of termination from you
•
30 days following you receiving written notice of termination from Chubb.
See also “Your right to Cancel” below.
Making a claim under the Policy
Section 7 of the Policy sets out the requirements for making a claim under the Policy. To make a claim, you need to give written
notice to Chubb at the following address:
Claims Department, Chubb Insurance Company of Europe SE, One America Square, 17 Crosswall, London, EC3N 2AD.
(or by email to [email protected])
Your claim under the Policy may relate either to:
•
a claim made against you in the form of a written demand or a civil, criminal or extradition proceeding (in which case, you
must, when claiming under the Policy, inform Chubb of the written demand or civil, criminal or extradition proceeding
and you must give Chubb the written notice as soon as practicable*)
or to:
•
a formal investigative inquiry (in which case, you must, when claiming under the Policy, inform Chubb of that inquiry and
you must give Chubb the written notice as soon as practicable*)
or to:
•
circumstances which could give rise to such a written demand, such a civil, criminal or extradition proceeding or such a
formal investigative inquiry (in which case, you must, when claiming under the Policy, inform Chubb of the
circumstances).
Having made a claim under the Policy, you must give Chubb all information and co-operation as Chubb may reasonably require.
[*Section 7 provides that, if written notice is not given as soon as practicable, Chubb shall not be liable to pay
in respect of the claim against you or the formal investigative inquiry.]
Ceasing to be a director, officer, Member or Trustee
Even if you have stopped being a director, officer, Member or Trustee of a Directorship Organisation, the Policy can protect you
against claims, proceedings and inquiries which later arise out of conduct before you stopped. For a number of years after you
have stopped, a claim, proceeding or inquiry against you might arise. You might therefore want to carry on insuring in respect of
that Directorship Organisation for some years after you have given up the position instead of putting an end to insurance in
respect of it.
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So, when ceasing to be a director, officer, Member or Trustee of a Directorship Organisation, you should consider (and keep
under regular review) whether to continue insuring in respect of it and for how long. However, neither Chubb nor Quantum can
advise on this. It is suggested that you seek legal advice on whether to continue insuring and for how long.
New positions
Whenever you become a director, officer, Member or Trustee of a company, LLP or charity which you are not insured for under
this Policy (ie because you initially took out the Policy in respect of one or more other organisations), you can ask Chubb to add
that company, LLP or charity to the Policy as a Directorship Organisation by endorsement. To obtain insurance in respect of that
company, LLP or charity as soon as possible, you should make your request as soon as possible (to make such request, contact
Quantum). Chubb is not obliged to agree to add that company, LLP or charity but is likely to do so where it is not in an
insolvency procedure and, in the case of a company, it is a company incorporated under the laws of the United Kingdom,
Guernsey, Jersey or the Isle of Man and is not admitted for public trading on a stock or securities exchange. Additional premium
would be charged in accordance with Chubb’s price scales.
Statement of Price
The premium Chubb charges for an Individual Director’s Liability Policy depends on the number of director, officer, Member
and Trustee positions for which you seek cover and on whether or not you are a member of the Institute of Directors:
No. of Director or Officer Positions
1
Monthly Premium
£49.58* (or £79.54**)
2
3
£74.38* (or £119.83**)
£99.17* (or £159.08**)
4
5
£123.96* (or £198.34**)
£148.75* (or £238.63**)
More than 5 but less than 20
£173.55* (or £277.88**)
(*If you buy £1,000,000 as the total amount payable under the policy in each year)
(**If you buy £2,000,000 as the total amount payable under the policy in each year)
Members of the Institute of Directors receive discounts if they qualify as follows:
Member Discount – 25%
IoD Diploma Holders who have successfully completed the assessment – 30%
Chartered Directors – 35%
IoD Fellows – 35%
Where a member falls within more than one of the discount categories above, the member is entitled to one discount only (the
highest applicable to him/her), not to cumulative discounts.
The premiums include insurance premium tax at the prevailing rate. There are no pre-set times for premium to be reviewed.
Should Chubb decide at any time in the future to raise premiums, Chubb will notify you so that you can decide whether or not
you wish your policy to continue.
Your premium will be collected by Chubb via Direct Debit and you will be informed of all amounts in advance.
Your Right to Cancel the Policy
Financial Services Authority regulations give you the right to cancel the Policy within 14 days, starting on the later of:
•
the date you take out the Policy; and
•
the date you receive the Policy documentation.
However, if you do not cancel within that 14 days, you still have, by virtue of section 19 of the Policy, the right to cancel it at any
time.
In order to cancel the Policy, you need to write to Executive Protection Department, Chubb Insurance Company of Europe SE,
One America Square, 17 Crosswall, London, EC3N 2AD, quoting your policy number and telling Chubb that you wish to cancel.
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Upon Chubb’s receipt of your notice, the Policy will terminate and Chubb will refund such premium paid as relates to the time
after Chubb’s receipt.
Terminating Quantum’s Role as your Intermediary
You or Quantum may terminate Quantum’s authority to act on your behalf at any time without notice period or penalty. Notice
of termination must be given in writing to Quantum and will be without prejudice to the completion of any transactions already
initiated. Any business currently in progress will be completed unless Quantum receives your instructions to the contrary. To
give notice to Quantum, write to Quantum Underwriting Solutions Ltd, Blythe Valley, Solihull, B90 8AG or email Quantum at
[email protected].
Choice of Law and Language
You and Chubb are entitled to choose the law which will govern the Policy. Chubb proposes English law. English law will apply
unless you and Chubb agree otherwise. Section 20 of the policy states that the construction of the terms, and the validity and
effect, of the Policy are governed by English law. Any dispute or difference arising under or in respect of the Policy shall be
subject to and determined within the exclusive jurisdiction of the courts of England and Wales.
The European Economic Area jurisdiction whose laws Chubb takes as the basis for the establishment of relations with you is
England and Wales.
The language of the Policy is English and, if Chubb agrees to insure you, our communications with you throughout the duration
of the Policy will be in English.
Data Protection Notice
For policy administration purposes, Chubb will use and store personal information and any personal sensitive information (for
example, relating to involvement in criminal proceedings) on an electronic database, which may also be available to selected
authorised representatives of member insurers of the Chubb Group of Insurance Companies operating outside Europe. Chubb
has taken responsible measures to protect such personal information once it is transferred outside Europe in accordance with its
normal data security policies. Chubb may also disclose such personal information to outside parties, such as premium collection
agencies, reinsurers, outside counsel and claims administrators, to provide the insurance and claims services or as requested or
required by regulatory bodies.
ACE has acquired Chubb, creating a global insurance leader operating under the renowned Chubb name.
Chubb Insurance Company of Europe SE, a European company incorporated in England and Wales and registered under Company Number SE13. Registered Office:
One America Square, 17 Crosswall, London, EC3N 2AD, United Kingdom. Authorised by the Prudential Regulation Authority and regulated by the Financial
Conduct Authority and Prudential Regulation Authority. Full details can be found online at https://register.fca.org.uk/
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