Director & Officers Liability
Directors and officers liability insurance (D&O insurance) provides coverage for you, your company, and its assets against liability claims related to corporate activities. This insurance is crucial for protecting companies, directors, and officers from a wide range of legal issues and actions.
Applicable Situations
- Workplace Issues: Covers claims related to harassment, discrimination, defamation, wrongful discipline, and breach of employment terms.
- Government Agencies: Protects directors and officers from personal liability for damages caused by the company.
- Misconduct and Mismanagement: Includes liability for actions like mismanagement of funds and misleading acts towards competitors.
Coverage Inclusions
- Protection for Decisions and Actions: Safeguards individual directors and officers from claims arising from negligent decisions or actions.
- Asset Protection: Can include personal asset protection for directors and officers.
Exclusions
- Other Insurable Losses: Does not cover losses that fall under other types of insurance, like professional indemnity insurance.
- Criminal or Fraudulent Conduct: Excludes illegal or dishonest acts.
- Known Claims and Circumstances: Does not cover pre-existing or known claims.
- Litigation Exclusions: Excludes claims initiated before the policy’s coverage start date.
- Catastrophic Hazards: Often excludes events like war, terrorism, and environmental disasters.
- Insured vs Insured Claims: Excludes claims made by others insured under the same policy.
- Major Shareholder Exclusion: Excludes claims by individuals holding a significant percentage of the company.
- Specific Broker Exclusions: Tailored exclusions as identified during underwriting.
For comprehensive assessment and policy formulation, businesses can contact Sydney Insurance Brokers for expert guidance on directors and officers insurance needs.
