A company director or senior officer has a high duty of care towards clients and employees. If a claim is made against you whilst you're uninsured, as an individual you will be personally liable for all the damages and legal costs. It does not matter whether you are to blame for an incident or not, the cost of defending yourself can become astronomical very quickly and recovering from any claim is hard work even with directors and officers insurance cover.
It is important to know that the Limited status of a company may not eliminate you from claims made against your company. It is not unusual to find directors that are under the impression that their limited status covers them so they do not need directors and officers insurance cover. This means that they are unintentionally putting their own personal belongings at risk.
There are various different acts, rules and regulations that companies have to abide by and have to be seen to be putting strict rules in place to protect their clients. Mistakes can and do happen in business everywhere but if you are unlucky enough to have a client make a claim against you, the claims you are likely to face could be: