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D&O Is an Increasingly Important Coverage for Businesses

Whether erecting scaffolding, burying a pipeline, installing electrical switch gear, or flashing a roof, construction work brings with its significant potential risks – not only for those on the jobsite but also to the managers, directors and administrators of the construction company.

We have seen in our own community examples of cranes falling, dump trucks rolling, and tragedies such as workers or third parties getting injured or killed while working at heights or in confined spaces. Such risks are inherent in the construction industry, and are a constant reminder as to why good Directors’ and Officers’ (‘D&O’) and Employment Practices (‘EPL’) liability insurance is important.
A General Liability (‘GL’) policy will cover the construction company for liability arising out of its work, but only for property and bodily injury to third parties (not workers on the site), and only for suits involving compensatory damages. Defense cost for actions against individual directors and officers from civil or regulatory authorities are not covered by GL policies, and the only way of covering the defense against these potentially large cost actions is through a D&O policy.

It is therefore important to ensure that your business considers insurance coverage to protect the company, its officers, directors, and other employees in the event of workplace accidents, and over the past few years, this insurance coverage has become increasingly affordable to small- and medium-sized enterprises.