Directors and Officers Liability

The unique Australian litigation landscape has evolved into a potential minefield for Directors and Officers.  With an increase in litigation funding leading to an explosion in the incidence of class action lawsuits, Directors and Officers need to ensure that their insurance arrangements will meet their needs. 

A progressively more regulated corporate governance environment and the increasing incidence of class actions are raising the stakes for Directors and for Companies. In the case of individuals, the consequences can be severe as breaches of statutory regulations can lead to heavy fines and in some extreme situations, imprisonment. In many cases Directors accept a career-damaging ban simply because they can not afford the defense costs involved.

Directors and Officers insurance is relevant for any Director, Officer or Senior Manager of a public, private or government organisation.  Claims can arise from a variety of sources, including, but not limited to shareholders, customers and employees.

Directors and Officers are particularly vulnerable when going through mergers or acquisitions or if they have US exposures.

Individuals could also be at risk in other business roles such as:

• Non-executive positions - in an advisory as opposed to a managerial capacity;
• shadow directorships - not named as directors though they do exercise control through a director; and
• defacto directors - have the same role as a director but are not legally appointed.

With over four decades of experience in providing Directors and Officers liability insurance, and coupled with our financial strength and global capacity, we are one of the leading providers in the Australasian market.

We have developed a number of insurance solutions for Directors and Officers that provide meaningful protection in their executive roles. They can include shareholder pollution cover, legal fees and expenses for investigations into the company affairs, libel and slander, securities and employment practice claims.

You can be sure that you have a dedicated partner in Chartis.  We are focused in answering your insurance needs today and anticipating tomorrow’s.  We aim for each client relationship to be a true partnership and will take on your challenges as if they were our own.