Company directors are responsible for making decisions that serve the best interests of the business and face significant pressure to meet stakeholder expectations. Despite good intentions, errors can occur, and as a director, you may be personally liable for claims related to breaches of duty or wrongful acts.
Directors and Officers Liability Insurance provides protection for directors and officers against personal legal liabilities they may incur while managing a corporation.
Do I need Directors & Officers Insurance?
Whether you are found liable for any claims brought against you or the business, the investigation costs and reputational damage from lengthy legal proceedings can be significant.
In your position, you may be exposed to claims brought against you by:
- Shareholders
- Employees (including claims for wrongful dismissal, harassment or failure to employ or promote)
- Statutory bodies (including alleged breaches of a Director’s responsibilities or investigations commenced by WorkCover following a work incident)
- Competitors (including allegations of conduct involving anti-competitive behaviour)
- The Corporation itself (including actions by a liquidator on behalf of the company alleging insolvent trading)
Therefore, if you are a Director or Officer of a corporation or business, it is recommended that you take out Directors and Officers Insurance.
What does this Insurance cover?
- Representation costs where a Director or Officer are legally required to attend an investigation regarding the affairs of the corporation
- Legal costs and expenses in the defence and investigation of a Directors and Officers claim
- Any compensation required to be paid by the Insured to dispose of a Directors and Officers claim
- This could be anything from a car, bus or train accident, and assault from another person or injury caused from falling or being hit by falling objects
As a business owner or company director, you may also like to consider the following related types of Insurance:
General Advice Warning
The information provided on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice on this website is General Advice and does not take into account any person’s individual investment objectives, financial situation or needs. Before making a decision based on this advice you should consider whether it is appropriate to your particular circumstances.
Where the General Advice relates to the acquisition or possible acquisition of a financial product, you should obtain a disclosure document, including the Product Disclosure Statement (PDS) and, where available, Target Market Determination (TMD) relating to the product and consider the content before making any decision about whether to acquire the product.
Authorised by Clearlake Insurance Brokers ABN 16 651 113 861 AFSL 559829
How Clearlake Insurance can help
At Clearlake Insurance Brokers, we recognise the risks that business directors and officers face while managing a company. Our expert insurance brokers will carefully assess your corporate risk management needs and exposures to provide a well-crafted, customised insurance solution that protects you personally, in addition to your company.
For more information or to arrange cover, please contact us on 02 9037 8970 or simply fill out the form below and one of our insurance brokers will get in touch shortly.
