What is Directors & Officers Liability Insurance?

Directors & Officers Liability Insurance covers risk exposure for company and board directors for breaches or situations that can result in personal liability and expense.

Is Directors & Officers Insurance necessary?

Directors & Officers Liability Insurance (D&O) is one of the least understood types of insurance, yet one of the most important. Australia is home to some of the world's largest Directors & Officers Liability Insurance claims, and the breadth of risk exposure for company directors and officers is becoming more complex and there is closer scrutiny from both internal and external stakeholders on general conduct.

Most recently, cyber attacks have become the nemesis of many Directors, with responsibility shifting between being an 'IT issue' to being regarded as a critical aspect of corporate governance. Mandatory breach reporting further emphasises cyber's position at the top of most board room agendas, with maximum fines for companies set at $1.85m and $360,000 for individuals.

Our insurance brokers' approach to risk management helps you to achieve the right level of Directors & Officers liability insurance cover. We take the time to gain a deep understanding of your business and industry, and work in partnership with your team to implement a robust risk management program that protects you now and into the future.


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What does D&O insurance cover?

  • Public, private and not-for-profit entities incorporated in both Australia and abroad (including entities traded on the TSX, LSE, AIM, JSE and NYSE)
  • Public Offering Securities including debt and equity capital raisings and initial public offerings
  • Legal representation expenses and the advance payment of defense costs
  • Civil fines and penalties
  • Run-off coverage for retired directors and officers
  • Coverage for the company for securities related claims (Side C company protection)

Overseas placements

The issue of local paper in overseas countries is an important insurance consideration. When an Australian-based multinational has overseas subsidiaries, and directors and officers rely solely on the Australian D&O insurance policy for worldwide protection, they may be vulnerable for several reasons:

  • Local regulations may require that a D&O insurance policy be issued by a locally licensed carrier
  • Local law may prohibit a local operation from having its parent company's insurance policy pay claims
  • Indemnity payments by Australian based parent company to individuals in overseas jurisdictions may have adverse implications for the company
  • The local subsidiary may not be able to legally indemnify the director or officer, leaving the individual's personal assets exposed

Who choose Gallagher

  • Local expertise, global strength
  • Priority claims service to support and guide you if something goes wrong
  • D&O specialists that understand the risks you face

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