Directors' & Officers' Policy

Directors and Officers Liability and Company Reimbursement Insurance together provide protection to directors and senior management for wrongful acts committed whilst carrying out their duties associated with the management of the company.

Insurance is typically arranged by the company on behalf of its board.

Coverage is provided for:

  • The costs of personal legal representation incurred by individual directors and officers in the defence of any civil or criminal proceedings.
  • Settlements by or judgments, including claimants costs awarded against directors and officers where no indemnity is given by the company.
Who is Protected

Coverage is provided to the:
  • Officers of the company and its subsidiaries. This includes any directors and employees in those capacities, and also extends to deemed directors under the Companies Act 1993.
  • Company itself, by way of reimbursement to the extent that the company has directly indemnified any officer of the company as it was legally obliged or permitted to do so.
Individual Coverage - Personal Financial Protection

Because traditional policies are designed for the directors and officers as a collective unit and arranged by the company, it does not necessarily provide the ideal coverage from the standpoint of the individual.

A personally arranged policy will provide a more relevant and secure coverage for the individual providing the following advantages over a group policy:
  • The amount of cover is available exclusively for the individual director. It cannot be exhausted by claims from others in the way that company arranged policies can.
  • Non disclosure of material facts by others cannot affect the coverage. The individual is the only insured party.
  • The policy cannot be cancelled by others such as the company, other board members, successors, receivers and the like providing the individual with improved security of cover following retirement, resignation or departure from a board.
  • There will be consistency of coverage across all directorships.
  • The individual and the insurer have the opportunity to develop a mutually beneficial long term relationship.

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