Directors Liability Insurance
If you are the Director or an Officer of an organisation, taking out Directors and Officers Liability insurance is extremely important. Your actions and decisions can be the difference between successes or losses for your company or a stakeholder. If what you have done negatively impacts the business or a stakeholder, you can be held personally responsible. Not only can this result in exorbitant legal fees, but your personal assets like your pension fund can be at risk.
Who needs this insurance?
- A member of a company board, whether executive or non-executive
- An alternate director of a board
- Any person who acts as a director, even if not officially appointed
- Prescribed Officers
- Senior Management
- Employees who serve on committees
- Any person who sits in a management role and who makes management decisions on behalf of the company.
Why do you need this?
The Companies Act imposes personal liability for breach of fiduciary duty. When you accept a management or director’s position, you immediately assume a fiduciary duty in respect of the company. This means that anything you say or do must be in the best interest of the company, and with any business you undertake on the company’s behalf.
What is covered?
- Awards
- Defence costs
- Investigation costs
A Director/Company can be legally liable to pay any of the above, following an alleged negligent act, error or omission, misrepresentation, or misstatement committed by an insured person during the course of the insured business. As soon as a claim has been made against you, you must notify us during your period of insurance.
What isn’t covered?
· Liability arising out of any deliberate, willful, dishonest, fraudulent, criminal, or malicious act or omission committed by you. Liability resulting from insolvency of the company.
· Liability resulting from actual or alleged insider trading.
· Liability resulting from, in consequence of or in any way involving any pension, profit sharing or employee benefit or welfare programme or share option, share incentive scheme or trust.