Are they insured?

In concert with previously expressed concerns over Two Chairs Hales, it suddenly occurred to me that we now have an individual who heads up not only a Public Corporation (British Waterways) but is now a director of a private limited company Canal & River Trust, writes Graham Freeman.

As directors (and officers) of limited companies have various duties, responsibilities and powers in connection with their position (usually set out in a job description or terms reference), they can be held individually responsible for a range of issues including: H&S, data protection, maintenance of satisfactory accounts, fraud and negligence. To guard against such damages, it is usual for said directors and officers to cover themselves through Directors and Officers (D&O) liability insurance.

Result in a claim

If a director or officer is found to have accidentally acted outside their terms of reference and this action was to result in a claim, compensation and legal fees will be covered by the D&O policy. If the act was deliberate, such action is unlikely to be covered.

So, if the new formed CART is acting as a responsible private limited company, you would expect the CART's directors and officers to have D&O liability cover in place. If this is the case, how was the premium for this cover funded ? Have Tony Hales (and all of other nominated directors and officers) paid for their D&O cover out of their own pocket ?

Defra can't pay

I only ask that because Defra can't pay for D&O cover for the directors and officers of a private company because all Defra funding comes from the public purse !

Perhaps there is a need for a Freedom of Information question here ?