Directors & Officers Liability Insurance Description
Directors & Officers Liability Insurance covers the successful defence of Directors and Officers of the company against such situations as :
- Alleged breaches of duty by one or more directors
- Misleading & deceptive conduct under the Trade Practices Act
- Successful defence of claims against Directors for insolvent trading
- Claims from an official investigations – for example ACCC investigating a complaint of anti-competitive behaviour
It protects the innocent but not the guilty. You cannot insure an illegal act.
What is Covered?
The core purpose of a Directors and Officers insurance policy is to provide financial protection for managers against the consequences of actual or alleged “wrongful acts” when acting in the scope of their managerial duties. The Directors and Officers Liability policy will pay for legal costs and financial losses. In addition, extensions to many such policies also cover costs for managers generated by administrative and criminal proceedings or in the course of investigations by regulators or criminal prosecutors. These coverage extensions are gaining more and more importance among company directors. In ths way, managers receive comprehensive, integrated cover that ensures them a reliable, consistent and structured legal defense.
Pitfalls of Directors & Officers Liability Insurance Policies
The loss or “occurrence” must be made during the currency of the Directors & Officers Liability Insurance policy. This is why a Directors & Officers Liability Insurance policy must be kept current after discontinuing to be a Director of a company. The Directors & Officers Liability Insurance policy will not respond if this is not the case.
When purchasing Directors & Officers Liability Insurance you need an unlimited “retroactive clause”. This affords you the best cover.
For More Information About Directors & Officers Liability Insurance Policies …
For more information about Directors & Officers Liability Insurance Policies send us an email, call us on 1300 880 409 or use our Contact page to send us an online inquiry. We will contact you within 24 hours to answer your inquiry.