The Dangers for Decision Makers; Insurance Is Essential to Protect Bosses and Staff from Legal Claims

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FOR Dale Rogers, the cost is irrelevant. Despite facing soaring insurance premiums, he is willing to pay to protect himself and his staff from liability claims.

Dale, 61, managing director of software and IT solutions firm Practice Net, recently signed up for directors and officers insurance at a cost of [pounds sterling]2,850 a year.

Dale, based in Cardiff, says: 'I knew companies could be sued but I didn't realise the risks that directors and managers face.

'If you think of everything that could go wrong in running a business, the list is endless.

' This insurance cover means there is one less thing to think about and it's just a cost we have to bear.' Directors and officers liability-insurance protects companies and individuals from claims that could be financially disastrous. But according to insurer Zurich UK Commercial, nearly half of all businesses operate without cover and about a third do not understand what it is for.

Head of business operations David Smith says: 'Bosses of small businesses are frequently not aware of the personal financial risks they face.

'They are no less vulnerable-than larger companies and the financial consequences for the business and the individuals is likely to be proportionally greater. …