No matter how big or small your business or corporation is, as a Director or Officer you have certain responsibilities.
You have employees that depend on you for guidance, advice and inspiration and rely on you to do the right thing. In addition, you may have shareholders and other bodies that have certain expectations. All of these people also have the power to sue you for a number of things, often out of your control. It’s important you’re protected so you can operate with confidence on a daily basis.
What is Directors and Officers Insurance?
Directors and Officers Liability Insurance protects Directors and Officers for legal liability you may sustain personally in managing a corporation.
Who needs it?
Simply put if you’re a Director or Officer of a corporation or business, you need business insurance. In your position, you may be exposed to claims brought against you by:
- Employees (including claims for wrongful dismissal, harassment or wrongful 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).
What does Directors Insurance include?
It covers you for the following:
- Representation costs where a Director or Officer (you) 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.