1. Directors can be personally liable for any losses that are incurred
A Credit Union Director’s personal assets could be at risk if a claim against them is made, there is no other way of protecting a Credit Union Director from personal liability except by having a Director and Officers Insurance Policy in place.
2. Legal costs for defending allegations can be costly
The cost of defending an action against a Director or Manager of a Credit Union could run into thousands of pounds, regardless of whether the claim has any merit, Directors and Managers can only protect themselves from these costs through a robust Director and Officers Insurance Program.
3. Liable for the misdeeds or negligence of other Credit Union Directors
Sitting Directors, Senior Staff or Managers paid or voluntary working with a Credit Union could be liable for the negligent or wrongful acts of other Director, or Managers, and be liable for the costs of defending against legal or regulatory actions. This also applies to past or Retired Directors even they are no longer working with the Credit Union.
4. Approved Persons Regime personally identifies those who may be liable.
CUNA Mutuals Directors and Officers Insurance provide an unrestricted definition of directors or officers covering all types those past, present and future directors and officers. Our Insurance also provided protection for approved persons of the Credit Union who perform controlled functions as specified in the law.
5. The General Data Protection Legislation
Regulation around Credit Unions is ever increasing and with the arrival of the GDPR or the General Data Protection Legislation we will see additional liability and punitive fines for data breaches on financial instructions including Credit Unions. Credit Unions that do not have Directors and Officers Insurance in place are running the risk of exposing their senior persons to legal and other expenses when things go wrong.