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Directors work in a tough regulatory environment and companies throughout the world face a battery of laws, codes and standards. COFESA and ABSA/AIFA in conjunction with Chartis South Africa Limited (one of SA’s leading D&O insurers) have developed a unique product offering for COFESA members, the product provides broader cover, with fever restrictions and more value added services. All this is underpinned by one of the most experienced claim teams the industry has to offer.
Cover Includes:
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Non-rescindable policy for individuals (unless fraud)
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Defence costs, damages, and settlements for “wrongful acts”
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Legal fees and expenses up to full policy limit for attendance at any investigation into the affairs of the company or an individual insured
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Outside directorship cover
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Dedicated limit per non-executive (in addition to policy limit)
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Assets and liberty costs cover (including bail bond and director disqualification)
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Automatic cover for new non-US subsidiaries and for US entities valued within 25% of total group assets
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Bilateral discovery period
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Lifetime runoff for retired directors
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Company crisis loss cover
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Pre Investigation Costs
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Public Relations expenses
Claims Examples:
Breach of Contract
A company is sued by its former agents after it terminates their contracts in order to replace them with fulltime staff. The agents sue for non-payment of commission. Overall settlement and defence costs reached 6 figures.
Unfair treatment of shareholders
Shareholder employed by the company claims he was dismissed in order to allow the company to purchase shares at an unfair price. Defence costs reached 6 figures.
Defence to public enquiry
A company is concerned about a forthcoming public enquiry, which it fears could have a major impact on its business. We fund the professional costs of preparing directors for attending the investigation for questioning and succeed in defending the company’s position.
Fire Safety Regulations
Directors are prosecuted by local authority after persistently failing to comply with fire regulations. They claimed that the work required to their premises by the local authority was unnecessary. We defended the directors and eventually an acceptable solution was reached. Defence costs were 6 figures.
Employment Practice Liability
The possibilities for Employment actions against businesses are multiplying. Most staff are aware of their rights and are quite prepared to take action against their employers id they think these are being breached. Meanwhile compensation continues to increase, setting precedents and giving employees everywhere a context for their own grievances. Of course outside of South Africa companies with any kind of international exposure face the full force of class actions and a history of huge settlements.
Cover Includes:
- The company and all employees, including seasonal and temporary workers
- Broad definition of Employment Practice Violation
- Outside Directorship cover
- Legal Fees and Expenses for Official Investigations
- Advancement of Defence Costs
- North America Exposure
Claims Examples:
Unfair dismissal
An employee is dismissed for non-attendance even though her employer knows she is pregnant. Her employers claim that the manager who dismissed her was not aware of her pregnancy – although the company fails to reverse its decision when the employee produces confirmation from her G.P. The case is settled for a 6 figure sum.
Discrimination
An employee complains of being asked to form an unacceptably close relationship with a client. The employee claims that once they refused, they were dismissed. The case is settled for a 6 figure sum.
Misconduct
An employee is dismissed after sending a stream of offensive emails to colleagues about one of his senior managers. However the employer failed to follow proper process in dismissing the employee and the case was settled for a 6 figure sum.
Discrimination
A female employee is made redundant, she complains she was belittled by her line manager who constantly belittled and insulted her in front of colleagues with cutting remarks and insulting comments. The case is settled for a 5 figure sum.
Constructive Dismissal
A manager claimed he was forced to resign after being poorly treated by his employer. He claimed he was shouted at by directors, that his management capabilities and confidence were undermined in front of staff and that problems he escalated were ignored. The claim was successfully defended with 6 figure legal costs.
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