Directors and Officers
In the course of operating a business, the company and their Directors and Officers operate within an increasingly demanding regulatory climate.
Any mistakes made which adversely affect shareholders, employees, creditors and other parties of the company can lead to requirement to defend an action.
Circumstances under which a company is permitted to indemnify its Directors and Officers are limited under the Company’s Act and if sued in their personal capacity, whilst acting on the company’s behalf, they may not be able to rely upon the company to protect them.
Unlike the company, this personal accountability may be unlimited and can lead to bankruptcy, the seizure of assets and estates, potentially including those owned by a spouse.
Directors and Officers liability insurance provides cover for those persons authorised to act on behalf of the company in respect of their wrongful acts leading to a loss and reimburses the company itself where the company is required or permitted to indemnify such persons for such loss.
Cover extends to:
- Include defence costs
- Employment Practices' Liability *
- Environmental Liability defence costs
- Outside board directorships
* In addition, specific cover is available to protect the company itself, its’ directors and employees against the uncertainty of employment related actions