Company directors are required to act in the best interest of the business and are therefore under immense pressure to meet the expectations of all stakeholders.
Even with the best intentions, mistakes do happen and as the company director you may be left personally liable for allegations of a breach of duty or wrongful acts.
At Coverforce, we understand the liability risks that business directors and officers are exposed to. That's why our expert insurance brokers are here to deliver corporate risk advice and a smart, tailored insurance solution to cover you, not just your business.
What is Directors and Officers Insurance?
Directors and Officers Liability Insurance protects Directors and Officers against legal liabilities they may sustain personally whilst managing a corporation.
In your position, you may be exposed to claims brought against you by:
- 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)
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.
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: