A GUIDE TO DIRECTORS & OFFICERS INSURANCE
You're faced with more responsibilities and regulations than ever
As a company director or officer, you now have more responsibilities than ever before. In many cases, you are personally liable for actions you take on behalf of the company. Company directors can be personally sued by shareholders, creditors, customers, competitors, employees and members of the public.
So it's more important than ever to make sure you have the right cover in place to protect you, should problems arise.
Know your legal rights
You need to understand your legal rights, and seek should legal advice if necessary to fully understand the responsibilities of individuals and corporations.
Protect yourself from the government regulators
Agencies like the Australian Securities and Investments Commission (ASIC) & the Australian Competition & Consumer Commission (ACCC) have more funding than ever to take action. In addition, there's the cost of legal representation to defend yourself if action is taken.
Directors and Officers Liability Insurance can help
Rose Stanton can arrange Directors and Officers Liability Insurance which protects directors and officers against your legal liability while acting as an officer or director. That means settlements, compensations, and/or damages and includes legal costs and other expenses to defend yourself.
We'll need a fully completed proposal form and all relevant information in order to arrange cover.
Your personal support
If you or fellow directors and officers are faced with litigation, it is your personal responsibility, not the company's. The company may indemnify the individual, at the discretion of the company, depending on the company's Articles of Association.
So Directors and Officers Liability Insurance provides protection independent of any relevant corporate indemnity. Legal action can be costly, so this type of insurance can fund the defence of an action up front.
Specialised Legal Representation
Since litigation involving directors and officers is usually complex and can often involve directors and officers defending their personal reputations. So you need access to specialised and highly qualified legal practitioners to represent you and protect your interests.
Protection that goes further
With today's increased responsibilities and greater corporate regulation, you need a comprehensive insurance solution. Directors and Officers Liability Insurance has been created specifically to meet today's needs, providing automatic cover for:
- Civil proceedings
- Successful defence of criminal proceedings
- Trade Practices actions
- Occupational Health & Safety actions
- Official investigations and enquiries
- Employee actions
Directors & Officers Liability Insurance can also be endorsed to include cover for:
- Outside Directorships
- Prospectus liability
- Joint Venture liability
Directors & Officers Liability Insurance incorporates the following policy features:
- Unlimited retroactive cover
- Advancement of defence costs
- Additional reporting period
- Severability and non-imputation
- Automatic cover for new subsidiaries
Increased cover for added peace of mind
These policies can be endorsed to provide an Increased Aggregate Limit of Indemnity, effectively doubling the amount of cover. At Rose Stanton, we appreciate that directors and officers will take appropriate precautions to minimise their personal liabilities. However, you can't ignore the potential risks associated with the role of company director and company officer.
Directors & Officers Liability Insurance provides you with peace of mind knowing that should you ever be faced with litigation or prosecution, your insurer will provide every possible assistance and support in protecting your personal assets, reputation and business.