Directors & Officers Liability
Protection for your personal assets and professional reputation
Directors and Officers Liability (D&O) insurance is designed to protect personal assets of directors and officers of corporation by providing indemnity for loss arising from a claim arising from a wrongful act in the course of performing their duties as a director or officer.
Being sued can be a traumatic and expensive experience and can put your personal assets at risk. The increasingly litigious nature of our society, the rise of class actions along with increasing corporate governance and regulatory surveillance, places great pressure on company directors and officers to perform meticulously. It is prudent to ensure that you have adequate cover.
- Directors and Officers insurance is relevant for any Director, Officer or Senior Manager of a public, private or government organisation. Claims can arise from a variety of sources, including, but not limited to:-
- Employees - actions alleging discrimination, harassment, breach of employment contract, defamation, misleading misrepresentation, wrongful discipline, etc.
- Creditors - alleging that the director allowed the company to trade whilst knowing it could not pay its debts.
- Government agencies - directors and officers may be personally liable for breaches of hundreds of statutes.
- Competitors - Trade Practices Act claims brought against the directors for misleading and deceptive type conduct.
- Shareholders - alleging that the directors mismanaged the operations of the company and its funds.
In the case of individuals, the consequences can be severe as breaches of statutory regulations can lead to heavy fines and in some extreme situations, imprisonment. In many cases Directors accept a career-damaging ban simply because they cannot afford the defence costs involved.
Directors and Officers Liability Experts
McKenzie Ross has experienced Directors & Officers practitioners who will provide you with a comprehensive review of your D&O exposure and provide a tailored insurance solution to suit you and your fellow dorectors needs.
Local Knowledge, Global Reach
McKenzie Ross has the local knowledge to transact business with all of the major Australian professional risks insurers and underwriting agencies. However if adequate policy terms and conditions cannot be sourced in Australia then we can utilise our subsidiary company Prime Underwriting Australia Pty Ltd to approach the Lloyds of London insurance market on your behalf.