Directors and Officers

As a Director or Officer of a Public Company or Organisation you are charged with a significant number of duties and obligations. Any breach of these duties can result in a personal exposure and liability for them. Such liability can be incurred not only as a result of your own activities, but also from the activities of fellow directors or officers.

Typical sources of claims arise from shareholders, customers, creditors, regulators (civil and criminal charges), competitors (i.e. allegations of unfair trade practices) and employees.

Many companies indemnify their directors and officers through their constitution. When indemnifying a director, a company may incur liabilities that have a severe impact on its bottom line. A Directors' and Officers' Liability policy will address the concerns and liabilities of both the director, and the company when indemnifying the director.

Directors’ & Officers’ Liability insurance provides protection not only for judgements and settlements but also investigative, inquiry and often very substantial legal defence costs.

Careful consideration of the various exposures is needed as basic Directors’ and Officers’ cover is limited and the right policy construction and extensions are needed to ensure broad protection is provided.

Given the complexity of this cover and the basis upon which it is issued, the right advice from an experienced broker such as Perrymans is critical.