DIRECTORS AND OFFICERS LIABILITY INSURANCE

SERVICES / Business Insurance

WHAT IS DIRECTORS AND OFFICERS LIABILITY INSURANCE?

This type of insurance provides coverage for the personal liability of directors and officers, protecting them against breaches and situations that can result in personal liability and expense.

Key factors to consider include the coverage for legal representation expenses and defence costs, civil fines and penalties, and run-off coverage for retired directors and officers.

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WHAT DOES DIRECTORS AND OFFICERS LIABILITY INSURANCE COVER?

Directors and Officers Liability Insurance (D&O insurance) covers the personal liability of directors and officers, protecting them from potential legal expenses and damages. This type of insurance is essential for these positions.

In the event of a claim, the claims process involves notifying the insurer and providing relevant documentation to support the claim.

The period of coverage typically lasts for 12 months on a claims made and notified basis. During this time, the policy provides protection for directors and officers against personal liability and expenses arising from claims made against them.

Exclusions Under D&O Insurance

It’s important to note that there may be exclusions and limitations to the coverage provided by the insurance policy. These exclusions and limitations specify certain situations or types of claims that may not be covered. These may include:

Fraud

Intentional wrongful acts

Bodily injury

Property damage

Prior or pending litigation

It is crucial to carefully review the terms and conditions of your D&O insurance policy to understand the specific exclusions and limitations.

THE BENEFITS OF HAVING DIRECTORS AND OFFICERS LIABILITY INSURANCE

It provides coverage for legal representation expenses and defence costs, ensuring that directors have the necessary resources to defend themselves in the event of a claim.
D&O insurance covers civil fines and penalties that may be imposed on directors, mitigating the financial impact of such consequences.
It offers run-off coverage for retired directors and officers, extending protection even after they’ve ceased their positions.

HOW DO I KNOW IF I NEED DIRECTORS AND OFFICERS LIABILITY INSURANCE?

When is D&O insurance necessary? Consider factors such as the size and nature of your company, the industry you operate in, and the potential risks involved.

It is crucial to have this type of insurance when your company has directors and officers who could be held personally liable for their actions or decisions. This insurance provides protection against legal expenses, damages, and compensation awarded against directors.

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WHY CHOOSE WESTSIDE INSURANCE SPECIALISTS FOR YOUR DIRECTORS AND OFFICERS LIABILITY INSURANCE

Choosing the right D&O insurance policy is essential to ensure adequate coverage. To determine if Directors and Officers Liability Insurance is necessary for your situation, consult with Westside Insurance Specialists.

As insurance specialists, we will help you navigate the various policy options and tailor a solution that meets your specific needs. In the event of a claim, from lodgement, monitoring progress and negotiation with your insurer, our team ensures the claim process is as simple and efficient for our clients.

Do not leave your directors and officers vulnerable, protect yourselves with the right insurance coverage today.

Michael Davis

A people-focused business manager, Michael places a high level of importance on creating long-term relationships of value and trust. Spearheading Westside Insurance Specialists for almost 10 years, and in the insurance industry for almost two decades, Michael is well credentialed to provide stellar insurance solutions for his client base.

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