(http://optimuminsurance.com.au/ProductsServices/ProfessionalRisksInsurance/DirectorsOfficersLiabilityInsurance.aspx) - Directors and Officers Liability Insurance provides protection for the personal assets of directors and officers by providing indemnity for loss arising from a claim as a result of a 'wrongful act' committed by them in the course of conducting their business. 

1. Directors and Officers Liability Insurance
Policies

2. Directors and Officers Liability Insurance provides protection for the personal
assets of directors and officers by providing indemnity for loss arising from a
claim as a result of a 'wrongful act' committed by them in the course of
conducting their business.
All Company Directors and Officers have an exposure to potential claims and
legal action regardless of their company's size and business activities.
Corporate governance and regulatory surveillance places immense
accountability and pressure on business and company directors and officers
to perform their duties thoroughly.
Directors & Officers Liability Insurance
Policies

3. Claims can arise from many sources and include:
• Breach (alleged or actual) of the Trade Practices/Fair Trading Legislation
• Enquiries by regulatory authorities (e.g. ASIC, ATO, ACCC)
• Breach of Contract
• Shareholder disputes
• Defamation
• Competitors
• Creditors
Types of Exposures to Claims

4. Directors and Officers Insurance aims to provide protection for:
• Loss arising from a ‘Wrongful Act’ committed by them in the course of
conducting their business;
• Settlements, compensation and/or damages awarded against them; and
• Legal costs and other expenses associated with defending a claim.
The definition of a ‘Wrongful Act’ varies from one insurance company to
another. However it is commonly defined as any misstatement, misleading
statement, omission, an actual or alleged breach of duty committed, alleged
to be committed or attempted by or any other matter claimed against any
insured person, individually or collective as an insured person whilst acting in
their capacity.
Insurance Protection

5. To obtain a quotation, enquire online at www.optimuminsurance.com.au.
In most circumstances we are able to provide an quote over the phone. If you
would like to discuss your needs further, contact us on 1300 739 861.
Policy coverage is always subject to the terms, conditions and exclusions of
the insurance contract and policy wording provided by the insurer.
Each insurance company has its own policy wording. This means that
coverage can vary considerably from one insurer to another. It is vital that you
compare each policy based on the appropriateness of cover for your individual
or business needs.
As Insurance Advisers, it is our role to understand the terms and conditions,
so contact us now for advice and a quote.
Directors & Officers Liability Insurance
Quote

6. Frequently Asked Questions

7. Directors and Officers Liability Insurance provides protection for the personal
assets of directors and officers by providing indemnity for loss arising from a
claim as a result of a 'wrongful act' committed by them in the course of
conducting their business.
All Company Directors and Officers have an exposure to potential claims and
legal action regardless of their company's size and business activities.
Corporate governance and regulatory surveillance places immense
accountability and pressure on business and company directors and officers
to perform their duties thoroughly.
What is Directors and Officers Liability
Insurance?

8. • Breach (alleged or actual) of the Trade Practices/Fair Trading Legislation
• Enquiries by regulatory authorities (e.g. ASIC, ATO, ACCC)
• Breach of Contract
• Shareholder disputes
• Defamation
• Competitors
• Creditors
Directors and Officers Insurance aims to provide protection for:
• Loss arising from a ‘Wrongful Act’ committed by them in the course of
conducting their business;
• Settlements, compensation and/or damages awarded against them; and
• Legal costs and other expenses associated with defending a claim.
Claims can arise from many sources and
include:

9. The following types of insurance are commonly termed "Claims Made" Contracts
of insurance:
• Professional Indemnity Insurance
• Directors and Officers Liability Insurance
• Association / Non-Profit Liability Insurance
• Management Liability Insurance
• Employment Practices Liability Insurance
• Fidelity Insurance
Claims Made Policies

10. "Claims Made” policies only cover claims made or "Known
Circumstances" that you become aware could reasonably be expected
to give rise to a claim that arise during the period of insurance. Acts or
omissions may have occurred in a prior period and, as long as the act
or omission, was after the retro-active date, the policy will extend to
those prior acts.
It is essential to maintain continuity of insurance cover (no gaps in the
period of cover) as claims made against you or circumstances of which
you become aware could give rise to a claim, will not be covered if they
are not disclosed within the period of insurance where they first
arise. If there is any claim or potential claim or even a circumstance
that could reasonably be expected to give rise to a claim, it should be
reported to your insurer immediately it is known, regardless of your
own view as to fault. If you know of a claim or circumstance and it is
not reported within the insurance period in which it arises your
insurance policy is unlikely to respond.
What is a Claims Made Contract?

11. A 'Known Circumstance' could be defined as any fact, situation or
circumstance, which a reasonable person in the insured’s professional
position would have thought, might result in someone making a claim against
him/her. Therefore if a claim arises after the inception date of the policy from
a fact, situation or circumstance that the insured knew or should have
known, at the time of the commencement of the policy that might give rise to
a claim, it would normally be excluded as it arose from a Known
Circumstance.
What is a Known Circumstance?

12. By notifying all circumstances that might give rise to a claim, during a policy
period, an insured can get the benefit of their statutory rights under Section
40(3) of the Insurance Contracts Act 1984 (the Act). Section 40(3) provides
an insured with statutory rights to notify a circumstance or insured, to an
insurer, during the currency of the policy.
If a claim eventuates against an insured from the notified circumstances,
then the insurer cannot deny indemnity, despite the fact that the claim arose
outside the period of insurance. Therefore, any fact, situation or
circumstance, which a reasonable person in the insured's professional
position would have thought might result in someone making a claim against
them, should be notified to their current insurer.
Why is Notifying all Known
Circumstances Important?

13. If you change insurers, you will need to notify your insurer of every
conceivable circumstance before the expiry date of your policy. If this is not
done, and if a claim was to occur in the future from a circumstance not
previously notified, you may be left uninsured, with neither the previous or
the current insurer accepting liability for the claim. The prior insurer may
deny the claim as the insured failed to notify the circumstance or claim during
the period of insurance.
Changing from One Insurer to Another

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15. Contact Us
Phone +61 1300 739 861
Fax +61 1300 732 225
Hours 9.00am to 5.00pm (EST)
Monday – Friday
Email service@optimuminsurance.com.au
Website www.optimuminsurance.com.au
Presentation Disclaimer –– “This material contains general information only and may not suit your
particular circumstances. To decide if a policy is right for you please carefully read the relevant Product
Disclosure Statement (PDS) and/or Policy wording. A copy of the PDS or policy wording is available by
contacting our office on 1300 739 861;”
Disclosure Statement – “Optimum Insurance Services Pty Ltd is a Corporate Authorised
Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services
Licence No 240549, ABN 15 003 886 687.”