What is Directors and Officers Liability Insurance?
Directors and Officers Liability Insurance (D&O Insurance) provides protection to:
- The Directors and Officers of a company (commonly referred to as Side A Cover)
- The Entity for reimbursement for losses or advancement of defence costs (commonly referred to as Side B Cover)
- The Entity in respect of its corporate liability, arising out of securities claims (commonly referred to as Side C Cover) in the event an insured suffers loss as a result of a legal action brought for alleged wrongful acts
Why Do I Need Directors and Officers Liability Insurance?
Directors and Officers can be held personally liable for breaches of the Corporations Act. The Corporations Act is an extremely complex piece of law and the ability for Directors and Officers to be aware of all their obligations thereunder is difficult.
The liability can occur not only as a result of a Directors own actions, but also that of a fellow Directors action, such as misleading and deceptive conduct, unfair competition, breaches of workplace safety, discrimination, harassment, misappropriation of trade secrets, breach of fiduciary duty and insolvent trading from creditors, employees, customers and regulators are commonplace.
Whilst some companies may indemnify their Directors and Officers (where permitted by law), the impact of an indemnity may have a considerable impact on its bottom line and therefore shareholder returns.
A correctly constructed Directors & Officers Liability insurance provides protection not only for judgements and settlements but also investigative, inquiry and often very substantial legal defence costs.
How can Perrymans help with Directors and Officers Liability Insurance?
Perrymans can assist you by working through your Directors & Officers Liability risk and then develop cover according to these requirements.
We will advise and guide you so as to present your risk in the best possible light and then market your Directors & Officers risk through our recommended markets to create competition. We will then analyse results, advise you of the alternatives, make recommendations, negotiate final terms and placement of your Directors & Officers cover.
We will work with you to achieve successful Directors & Officers Liability claims outcomes.
For more information, enquiries or advice on our Directors & Officers Liability insurance services, please contact Perrymans today.