Directors and officers take on a significant amount of responsibly in carrying out their duties and obligations when running a company. This leads to a significant degree of financial exposure to Directors and officers if they are found personally liable for any alleged or actual wrong doing.
Directors and Officers insurance is designed to provide the company and its directors and officers, with protection against the risks of managing a business.
You can incur substantial financial loss if any are deemed liable for causing loss or damage to a third party as a result of your actions or lack of an appropriate response.
Financial Risks for Directors
if you breach a duty or fail to meet an obligtion, you may be required to pay:
* Compensation to an aggrieved party
* A fine or penalty
* Legal costs of the other party
* Your own legal defence costs
* Interest on any of the above
A claim for breach of a suty or failure to meet an obligation may be brought against you by parties such as:
* Your company itself
* Regulators such as ASIC and APRA
* Liquidators (or administrators or trustees)
* Other directors on the board