Directors & Officers Liability Insurance

Protecting your Executives and Board of Directors from risk

Directors & Officers Liability Insurance is one of the least understood types of insurance, yet one of the most important. Australia is home to some of the world's largest D&O claims, and the breadth of risk exposure for Company Directors and Officers is becoming more complex and there is closer scrutiny by regular on general conduct.

Most recently, cyber attacks have become the nemesis of many Directors, with responsibility shifting being being an 'IT issue' to being regarded as a critical aspect of corporate governance. Mandatory breach reporting further emphasises cyber's position at the top of most board room agendas, with maximum fines for companies set at $1.85m and $360,000 for individuals.

How we can help

The first step is always to get a deep understanding of the structure of your business, where the key risks exist and identifying gaps in coverage. This includes meeting key stakeholders and understanding their concerns. From there we develop a robust risk management and insurance response to the specific nature of your business and seek the best available cover.

For an obligation-free consultation and to speak with one of our D&O Insurance specialists, call 1800 240 432 or complete the form along with your preferred time for a call. We would be delighted to work with your team to support the business going forward.

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Directors and Officers Liability Insurance can provide cover for: 

  • Public, private and not-for-profit entities incorporated in both Australia and abroad (including entities traded on the TSX, LSE, AIM, JSE and NYSE)
  • Public Offering Securities including debt and equity capital raisings and initial public offerings
  • Legal representation expenses and the advance payment of defense costs
  • Civil fines and penalties
  • Run-off coverage for retired directors and officers
  • Coverage for the company for securities related claims (Side C company protection)
  • Local placement for local underlyers in foreign jurisdictions

Overseas placements

The issue of local paper in overseas countries is an important insurance consideration. When an Australian-based multinational has overseas subsidiaries, and directors and officers rely solely on the Australian D&O insurance policy for worldwide protection, they may be vulnerable for several reasons:

  • Local regulations may require that a D&O insurance policy be issued by a locally licensed carrier
  • Local law may prohibit a local operation from having its parent company’s insurance policy pay claims
  • Indemnity payments by Australian based parent company to individuals in overseas jurisdictions may have adverse implications for the company
  • The local subsidiary may not be able to legally indemnify the director or officer, leaving the individual’s personal assets exposed

 

Are you ready to discuss your current D&O insurance arrangements? Let's get started.

Call us on 1800 240 432 to speak to one of our friendly Professional & Financial Risks team to discuss a tailored solution. Alternatively, complete the form and we'll get in touch at your preferred time.

 

P.S. Are you prepared for the wave of uncertainty? Download your copy of the Market Overview Report today for more information.

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