Against a legislative backdrop of increasing shareholder activism, strict compliance requirements for corporate governance, and ever more aggressive regulators, the legal and personal liability of company directors and officers is at an all-time high.
Businesses operating in foreign jurisdictions are required to comply with the legal framework relevant to their overseas operations. Such compliance includes listing and filing requirements, rigorous market disclosure and careful management of their professional relationships with employees, creditors, customers and suppliers.
Directors and officers are personally exposed to unlimited financial liability, and the company and board of directors share the responsibility for ensuring they have the highest possible level of protection.
In response to these evolving challenges, Liberty has enhanced its Australian Directors' & Officers' (D&O) policy wording to provide market-leading D&O protection. The new wording, combined with our ability to offer limits up to US$25 million, makes Liberty an attractive lead insurer for larger private and publicly listed companies and government bodies.
At a glance:
- Limits up to US$25 million
- Access to professional advice and legal representation (for an internal inquiry, self-report to a regulatory body and any industry-wide inquiry)
- Additional Side A limit available to all directors
- Change in control - lifetime cover for former insured persons who retired or resigned during the policy period
- Recoveries which are in excess of payments to the insured are reinstated to the limit of liability
- Fraud and dishonesty exclusion triggered only by a final, non-appealable legal ruling; no longer triggered by admission of fraud
- Provides full defence costs cover for all claims in the USA and claims alleging employment practice breaches in the USA; Former Insured vs Insured exclusion now applies only to claims brought by the company in the USA
- No pollution or professional services exclusion
- No late notification penalty if insured is legally prohibited from notifying a claim, inquiry, raid or self-report
- Also covers asset and liberty expenses, bail bond and civil bond expenses, extradition costs, personal taxation liability, public relations and reputation protection expenses.