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Business Insurance Solutions

Directors & Officers Liability Insurance 

What is Directors & Officers Liability Insurance?

Today it’s essential for all directors and senior management to protect themselves from potential personal financial loss resulting from their leadership role in a business. In a world where everyone’s looking for someone to hold accountable, it’s easy to point the finger and allege someone acted wrongfully in operating a business. Directors & Officers Liability insurance is available to both public and privately owned companies.

What’s covered?

  • Indemnity for directors’ and officers of a company, and the Company itself
  • Legal representation and defence costs
  • Reimbursement to the Company for the costs of meeting any directors’ indemnity obligations under the Company’s constitution.

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Commercial Risk Specialist, Bernie Kane, answers your questions

Q. Who needs Directors & Officers Liability insurance?

Bernie says: All limited liability companies should have Directors & Officers Liability insurance, particularly if you employ staff.

Q. Why do I need Directors & Officers Liability insurance?

Bernie says: A company’s directors and senior management can face legal claims from a wide range of stakeholders. This includes employees (i.e. for failing to protect from sexual harassment), shareholders (i.e. for not acting in the best interests of the company), statutory bodies (i.e. failures under the Health & Safety at Work Act), creditors (i.e. for trading while insolvent) and competitors (i.e. anti-fair trading practices). The main risk is that someone alleges you did something wrong, whether you believe you did or not, and you will need to legally defend the action against you.

Q. How much cover do I need? 

Bernie says: We generally recommend directors & officers liability cover of at least $1,000,000 plus defence costs. You may need greater levels of cover if there are a large number of directors, or the maximum value of your creditors is high. You may also need to provide your latest financial accounts so your insurer can assess the solvency of your business.

Think you might need Directors & Officers Liability insurance?


From our clients

  • “Meridian deliver for us where it counts. We are satisfied that premiums are the best available and any claims dealt with very professionally. With earthquake claims, we have even found the policy terms we have achieved with Meridian have been better than many of our peers.”
    Chris Parkin
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Client stories

Professional Indemnity cover helped this client settle a $3.5m legal claim – read their story.