Innocent mistakes can lead to costly court actions, and it doesn’t make a difference if you’re the director or officer of a multinational corporation or a small family company or sitting on a board – you could be liable.

If you are a Director or Officer of a Public Company or a Not for Profit Company you will need a Directors and Officers Liability insurance policy. Although these entities can hold Public Liability Insurance and Product Liability Insurance there are many risks for the Directors and Officers that sit outside of these covers which could put your personal assets at risk.

As a Director of Officer of either a Public Company or a Not For Profit Company you need to ensure you are protected against claims for ‘Managerial Errors’ which can come from;

  • Employees
  • Shareholders
  • Creditors
  • Gov’t authorities
  • Competitors
  • Customers

Outlined below is a brief description of the type of cover available under the Directors and Officers Insurance; however there are many features that sit within a Management Liability Insurance policy that may give your company more specific cover. To assist you with identifying what your particular needs are, please contact our office.

Directors’ and Officers’ liability

This clause covers Directors or Officers who have been found liable in a legal claim and have suffered a loss as a result, as long as their company hasn’t covered that loss.

Company Reimbursement

When a Director or Officer is found liable in a legal claim but the company takes on the liability and suffers a loss as a result; that loss will be reimbursed.

Company Liability

Similar to the Directors’ or Officers’ Liability clause, this one covers losses caused directly by a finding of liability in a legal claim, but applies to claims against the company, rather then directors and/or officers

Employment Practices Liability

If a company or an insured person suffers a loss due to a claim arising from an Employment Practices issue, that loss will be reimbursed

Policy Extensions

  • Additional limit for non-executive directors
  • Advancement of defense costs
  • Civil fines and penalties
  • Continuous cover
  • Crisis costs
  • Emergency costs
  • Extended reporting period
  • Incurring defense costs
  • Infringement of intellectual property rights
  • Investigation costs
  • Occupational health and safety defense and investigation costs
  • Pollution defense and investigation costs
  • Persecution costs
  • Public relations expenses
  • Retired directors and officers
  • Statutory liability
  • Superannuation trustees’ liability
  • Tax liability