Directors or officers of a corporation are exposed to personal financial liability in relation to any claim which might be brought against them in connection with the discharge of their duties in that capacity. These duties are numerous and may arise from statute (e.g. the Corporations Act) or common law.
Shareholders, employees, customers, suppliers and regulatory bodies are all a potential source of legal action. The personal assets of a director or officer may be at risk in such circumstances.
D&O insurance* covers past, present and future directors and officers for claims against them for wrongful acts in their capacity as directors or officers.
D&O insurance typically covers damages, third party legal costs and defence costs.
*These product descriptions are summaries only. Cover is subject to the terms and conditions of each policy.