Small firms are being hit from all sides during the Coronavirus pandemic and just keeping the business running or ticking over is a major challenge. However, one emerging trend is the increased risk to Directors and Officers for claims for alleged breach of duty, neglect, errors and omissions, according to Jarrovian Wealth.
UK insurers are preparing for an increase in litigation targeting Directors and Officers around Covid-19. This follows claims being filed in the US including one shareholder filing a class action against a firm and its Chief Executive, citing “misstatements” that the company had developed a Coronavirus vaccine in three hours .Another case involves a fraud class action lawsuit against a Cruise company and its Chief Executive for misleading statements about the virus in a bid to encourage customers to book cruises.
“The UK has tended to be up to 10 years behind the US when it comes to the type of legal claims we see from across the Atlantic, but we are catching up now and won’t be 10 years behind following this pandemic,” says our small business expert Adam Young, Co-Founder and Financial Planner at Jarrovian Wealth.
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Chris SalacinskiDirector & Financial Planner