ARTICLE · 08 MAY 2016

Important things to know about D&O insurance

ClarkeKann Lawyers

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Directors' and officers' insurance - what you need to know.

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Laura Gercken (Formerly With ClarkeKann Lawyers)

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WHAT IS D&O INSURANCE?

Directors' and officers' liability insurance ("D&O insurance") provides cover for company directors and officers from claims that might arise from decisions taken when performing their role.

WHAT TYPES OF CLAIMS WILL D&O INSURANCE COVER?

The precise claims that will be covered will always depend upon the wording of the policy. Generally, D&O insurance policies are obtained to cover several risk scenarios, including the following:

negligent acts by directors and officers;
employment and industrial relations issues;
litigation commenced by shareholders;
reporting errors; and
unintentional failures to comply with regulations.

Many D&O policies will also provide advance cover for the costs associated with defending claims, such as legal fees.

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