Directors’ & Officers’ Liability

Directors & Officers (D&O) insurance cover is an essential part of a corporate insurance program to provide cover for the legal liability directors may have to a third party, shareholders, customers, and the company itself, and for the legal costs of responding to an investigation.

Australia has a highly regulated corporate environment and there is a strong focus on directors’ and officers’ legal responsibilities. The corporate responsibility landscape is constantly expanding. It now includes responsibility for implementing strong cyber risk management to prevent data breaches as well as a broad range of environmental, social and governance issues and strict Occupational Health and Safety requirements.

There are multiple regulatory authorities that conduct investigations and inquiries into corporate conduct for which directors are responsible. Directors are often required to appear before regulatory inquiries and can be the subject of disqualification hearings, civil penalty proceedings and criminal enforcement action. Plaintiff law firms are quick to act when they identify potential corporate misconduct and directors are regularly named as defendants in class actions. Claims can arise from conduct involving financial misrepresentations, wrongful trading/insolvency, employment actions, data privacy breaches, and fraud.

We have an experienced D&O team that advises insurers on complex coverage issues. We provide strategic advice on managing excess market and reinsurance issues. We have acted in the defence of many D&O claims, both in response to regulatory investigations and in court proceedings, on instructions from both primary and excess insurers. We have a thorough understanding of the regulatory schemes and class action frameworks that are relevant to D&O claims.

D&O claims can often involve sensitive corporate issues and we can skilfully navigate the relationship between the insurer, the corporate client, and the broker so that the best outcome is achieved.

Our strong market reputation and solid working relationships with many of the key market participants means that we can often negotiate a resolution of potential defence problems that arise when multiple directors are involved. Therefore, avoiding disputes that can prejudice the defence of a claim.