Insurance for UK Directors Lags Developments in US

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Byline: Kit Bingham

The company director's role has become more prominent and time-consuming, thanks to increased regulation and the persistent attentions of shareholders. The job has become much riskier.The risks of a career-ending lawsuit for directors have never been greater. Nor has the need for comprehensive liability insurance.

Earlier this year, 15 former directors of Equitable Life, the UK pensions mutual, found themselves on the end of a pound sterling3bn ([euro]4.7bn) lawsuit. In the US, the wave of financial scandals has caused large investors to seek redress through the courts.

Barry Dinan, director of Hanson Green, which recruits chairmen and non-executives, says: "It's a hugely developing area. …