What Is Directors And Officers Insurance?

Thought you might be interested in the article What Is Directors And Officers Insurance and thought I’d share a few points with you here. I’ve found some relevant information here so if I find more, I’ll be sure to pass it on.

The following summary relates to corporate directors and officers (D&O) insurance policies, which are the most common form of D&O insurance. Another type of D&O insurance is personal D&O insurance, which protects an individual director.

Period covered

Typically provides 12 months cover on a claims made and notified basis, meaning that policies require that the insurer be notified of the claim during the policy period.

Monetary limit on cover

Capped at the monetary limit of indemnity specified in the policy, often with lower limits for some parts of the cover.

Persons covered

May cover executive directors, non-executive directors, the company secretary, executive officers and employees who are involved in the management of an organisation.

What does D&O insurance cover?

It is important that you obtain a copy of the whole D&O insurance policy. Some directors never see the actual D&O insurance policy. Do not rely only on a summary provided by the company or its insurance broker.

A D&O insurance policy usually comprises:

Policy schedule

• Policy period
• Premium
• Excess (also referred to as a deductible)
• Limit of Indemnity and any sub-limits (lower limits for some parts of the cover) and any reinstatements of the limits.

If you want to keep reading with any of that content, by all means, click here. Please feel free to contact me on (07) 3243 0000 or email at mfw@kingandcompany.com.au for any thoughts and perspectives.

Thanks,

Mark