phone 1800 240 432
phone

Directors & Officers Liability Insurance

Protecting your Executives and Board of Directors from risk.

Directors & Officers Liability Insurance (D&O) is one of the least understood types of insurance, yet one of the most important. Australia is home to some of the world's largest Directors & Officers Liability Insurance claims, and the breadth of risk exposure for company directors and officers is becoming more complex and there is closer scrutiny from both internal and external stakeholders on general conduct.

Most recently, cyber attacks have become the nemesis of many Directors, with responsibility shifting being being an 'IT issue' to being regarded as a critical aspect of corporate governance. Mandatory breach reporting further emphasises cyber's position at the top of most board room agendas, with maximum fines for companies set at $1.85m and $360,000 for individuals.

What does D&O cover?

  • check
    Public, private and not-for-profit entities incorporated in both Australia and abroad (including entities traded on the TSX, LSE, AIM, JSE and NYSE)
  • check
    Public Offering Securities including debt and equity capital raisings and initial public offerings
  • check
    Legal representation expenses and the advance payment of defense costs
  • check
    Civil fines and penalties
  • check
    Run-off coverage for retired directors and officers
  • check
    Coverage for the company for securities related claims (Side C company protection)
  • check
    Coverage for the company for securities related claims (Side C company protection)

Overseas placements

The issue of local paper in overseas countries is an important insurance consideration. When an Australian-based multinational has overseas subsidiaries, and directors and officers rely solely on the Australian D&O insurance policy for worldwide protection, they may be vulnerable for several reasons:

  • check
    Local regulations may require that a D&O insurance policy be issued by a locally licensed carrier
  • check
    Local law may prohibit a local operation from having its parent company’s insurance policy pay claims
  • check
    Indemnity payments by Australian based parent company to individuals in overseas jurisdictions may have adverse implications for the company
  • check
    The local subsidiary may not be able to legally indemnify the director or officer, leaving the individual’s personal assets exposed

How we help you

The first step is understanding

We get to know you, your needs and the structure of your business. We identify where the key risks exist and where gaps in coverage that may be. From there we develop a robust risk management and insurance response to the specific nature of your business and seek the best available cover.

Start your journey with us today.

Connect with us chevron-right

News & Insights View all chevron-right

Protecting your people during COVID-19

Protecting your people during COVID-19

With the world grappling with its response to COVID-19, keeping your employees safe has never been...

View more chevron-right
working from home cyber attack
Insights

Cyber security and COVID-19: How to protect your business online during the coronavirus outbreak

In their response to the coronavirus outbreak, employees and other stakeholders will begin remote...

View more chevron-right
sums insured
Insights

How to get your business sums insured right

Getting your sums insured right is critical if you have to make a claim, but most business owners...

View more chevron-right
chevron-up
Quick Links
Insurance
Services
Connect with Gallagher
© 2019 Arthur J. Gallagher.
Financial Services Guide / Legal Notices and Disclosures / Terms and Conditions / Privacy Policy
linkedin-square twitter facebook instagram