Directors of many of Britain’s companies may face large liability risks if unprepared for Brexit. According to insurance consultancy Mactavish, this will particularly be the case if the UK crashes out without a deal.
It said directors of UK-listed companies have by and large overlooked new Brexit-related liabilities which are not covered by most existing insurance policies, exposing them to potential legal action. Mactavish pointed out that there are limitations to Directors and Officers, (D & O), cover. The focus so far has been on protecting passporting rights, allowing financial services companies to conduct business in the EU and operational issues, but Brexit has created new insurance risks.