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Directors & Officer's Liability

Directors & Officers Liability provides financial protection for the directors and officers of your company in the event they are sued in conjunction with the performance of their duties as they relate to the company.

Directors and Officers Liability Insurance provides essential protection if you have to fund your own legal defence and meet any damages, costs or civil penalties awarded against you.

This can happen when your company cannot indemnify you under the Corporations Act, or is not required to do so under your company’s constitution or your director’s indemnity agreement.

The insurance also provides Company Reimbursement Cover if your company is permitted or required to pay your legal defence or any damages or costs awarded.

Directors & Officers Liability usually include Employment Practices Liability and sometimes Fiduciary Liability. The former involves harassment and discrimination suits, and is where the majority of your exposure will be.

Directors & Officers Liability is often confused with Errors & Omissions Liability. The two are not synonymous; Errors & Omissions is concerned with performance failures and negligence with respect to your products and services, not the performance and duties of management. Generally it is a good idea to carry both policies.