Directors & Officers Liability
Directors and officers can be held personally responsible for their decisions
in the course of managing a company.
Lawsuits brought by investors, competitors or clients as well as investigations
by regulatory agencies are difficult and costly to defend.
Directors’ and Officers’ Liability insurance provides protection for individual
defendants and, in some cases, the company.
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
- Spouses
* In addition, specific cover is available to protect the company itself, its’ directors and employees against the uncertainty of employment related actions
Directors and Officers Proposal Form
Lockton Service
Service starts with listening. We take the time to understand your specific goals, design a program that fits your needs, aggressively negotiate coverage, and implement a service plan. You will have the same dedicated service team throughout the entire process which allows us to anticipate your needs and create accountability.
It’s all about you. As a private, family-owned company, all our Associates focus solely on you, our client, rather than public shareholders.
Long-term thinking. Clients stay with us based on our expertise, creative solutions, seamless global resources and outstanding service. Our client retention rate of 95 percent reiterates our commitment to each and every client.