Protect your Decision Makers

D&O cover is structured to protect past, present and future directors, officers and managers of an entity. This insurance indemnifies them for loss resulting from a wrongful act, including errors and omissions, which the D&O is alleged to have committed in their capacity as a director, officer or manager. The cover includes reimbursement for civil damages, defence costs, judgements, settlements and reimbursement to the D&O’s company/employer for any indemnification to the director or officer for any such costs.
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What would constitute a claim?A claim is usually initiated by a third party who has some relationship with or interest in the company and alleges that a director or officer has acted wrongfully. A wrongful act is defined as an actual or alleged breach of duty, breach of trust, neglect, error, misstatement, misleading statement, omission, breach of warranty or authority or any other act. In most cases this results in financial loss to the third party, the company, or a combination of both.

What are fiduciary duties?

Duty to act in the best interests of the company
Duty to exercise powers for the proper purpose
Duty to disclose any conflict of interests
Duty not to make a secret profit
Skill and care that would normally be expected form a person of this knowledge and experience
Diligence when dealing with the affairs of the company

A claim is usually initiated by a third party who has some relationship with or interest in the company and alleges that a director or officer has acted wrongfully. A wrongful act is defined as an actual or alleged breach of duty, breach of trust, neglect, error, misstatement, misleading statement, omission, breach of warranty or authority or any other act. In most cases this results in financial loss to the third party, the company, or a combination of both.