Directors and Officers Insurance

Company directors and business managers face immense pressure to act in the best interests of their organisation while balancing the expectations of stakeholders, investors, and regulators. However, even with the best intentions, mistakes, allegations of mismanagement, or breaches of duty can occur—leaving directors and officers personally exposed to legal action.

Directors and Officers Liability Insurance provides essential protection for business directors, officers, and managers against personal legal liabilities arising from their corporate management duties.

What does Directors and Officers Insurance cover?

Directors and Officers (D&O) Insurance provides financial protection for business directors, officers, and managers against claims arising from their corporate decisions and management actions.

Coverage typically includes:

• 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:

• Management Liability Insurance
• Professional Indemnity Insurance
• Business Insurance Package

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Do I need Directors & Officers Insurance?

If you are a company director, officer, or senior manager responsible for key business decisions, you could be held personally liable for claims brought against you or the business by stakeholders, shareholders, employees, or regulators.

Even if a claim is unfounded, the investigation costs and reputational damage from lengthy legal proceedings can be significant, putting both your personal assets and professional reputation at risk.

In your position, you may be exposed to claims brought against you by:

• Shareholders
• 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)

Therefore, if you are a Director or Officer of a corporation or business, it is recommended that you take out Directors and Officers Insurance.