Company directors have an obligation to make decisions in the best interest of the business and are under immense pressure to meet the expectations of all stakeholders.
However, despite having good intentions, mistakes can happen and as the company director you are at risk of being held personally liable for allegations of a breach of duty or wrongful acts.
What is Directors & Officers Liability Insurance?
Directors and Officers Liability Insurance protects Directors and Officers against legal liabilities they may sustain personally whilst managing a corporation.
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.
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)
A Directors and Officers Liability policy will typically 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
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How Westminster Coverforce Can Help
At Westminster Coverforce, we understand the risks that business directors and officers are exposed to when managing a company. That's why our expert insurance brokers will take the time to assess your corporate risk management requirements and exposures and work hard to deliver a smart, tailored insurance solution to cover you, not just your company.
For more information or to arrange cover, please contact our team at 08 6210 8888. Alternatively, you can simply fill out the quote form below and one of our insurance brokers will get in touch with you shortly.
