What is Directors & Officers Liability Insurance?
Directors and Officers Liability Insurance is designed to protect the personal assets of directors and officers, by providing indemnity for loss arising from a claim, as a result of a ‘wrongful act’ committed by them in the course of performing their fiduciary duty as a director or officer of a company. A Wrongful Act is usually defined as an error, misleading statement, misconduct, omission, neglect or a breach of duty.
The law imposes duties upon the Directors and Officers of companies which they are personally liable for, including:
Anybody involved in the management have duties and obligations which may arise form one or more of the following statues:
Please ensure that you read your specific schedule and policy wording to establish actual covers quoted / taken.
In the current market, several Underwriters have released broader based Directors and Officers Liability policies, generically called “Management Liability Covers”.
A number of these policies may be endorsed to include aspects of cover such as Employment Practices Liability (ie. unfair dismissal, harassment), Statutory Liability Cover (fines and penalties) and also provide valuable access to experienced Legal Representatives. Please contact our office should you have any questions about these options.