Directors & Officers Liability Insurance

Take a look at our brochure for more details! Application Form (Adobe Acrobat)

What is it?
Put simply, it is a policy providing indemnity to Directors and Officers of a company for Personal liability to pay damages to another party as a consequence of wrongful acts committed by the Directors or Officers in their management of the affairs of the company.

However, it is anything but simple
Recent and on-going changes to legislation and consumer protection regulations mean Businesses are being subjected to tighter controls and Directors and Officers to even greater personal liability. Combine this with an alarming increase in litigation and Directors and Officers are now faced with an incredibly complex minefield of legal responsibilities. The result being greater levels of risk and therefore an increased need for protection. When unprotected, skyrocketing legal costs and ballooning payouts could put your personal assets at great risk. The costs alone of defending even unfounded legal actions could ruin you.

What it covers
Directors & Officers Liability Insurance provides coverage for both damages and legal costs associated with defending legal action (because we believe in being innocent until proven guilty). In short, Directors & Officers Liability Insurance is protection for everything you've worked hard for.

Who needs Directors & Officers Liability Insurance?
Obviously Directors and Officers of Companies, whether you are the CEO of a large institution, Director of a private compay, a committee member of a local club or even a Director with a non-active role in a company. Even the spouse of a Director can be held liable (but we've got that covered).

Why do you need it?
Because as your power increases as a Director, so does your responsibility. Increasingly, responsibility translates as liability for actions involved in the running of the company. You may be sued for making a completely honest error in judgment. You may not have even made a mistake at all. But, if a party brings an action against you, the costs of successfully defending your good name, not to mention your business and personal assets, can be crippling. A damages payout will be financially devastating.

Increasing litigation
Unfortunately litigation cases in Australia are resembling those of the United States in frequency and costs, and Directors are at risk from increasingly opportunistic legal action. Such actions can come from employment issues, creditor and insolvency issues, liquidator actions, regulatory authorities or shareholder and member actions.