Directors or officers of both private and public companies are exposed to personal financial liability arising from claims or allegations of wrongful conduct, in connection with the discharge of their duties. There are numerous statutes that impose these duties (e.g. the Corporations Act, Workers Compensation and OH&S Acts) and may also arise at common law.
Potential sources of legal action are; Shareholders, employees, customers, suppliers and regulatory bodies. The personal assets of a director or officer may be at risk in such circumstances.
D&O policies usually automatically cover past, present and future directors and officers for claims against them.
The policy also provides cover under the Company Reimbursement section of the policy to protect the corporate entity where it is legally entitled to, and has, agreed to indemnify its directors and officers to defend allegations made against them.
If you would like to obtain a quotation for this cover, please read our fact finding document here and then contact our office.