If you are the Director or an Officer of an organisation, taking out Directors and Officers Liability insurance is extremely important. Your actions and decisions can be the difference between successes or losses for your company or a stakeholder. If what you have done negatively impacts the business or a stakeholder, you can be held personally responsible. Not only can this result in exorbitant legal fees, but your personal assets like your pension fund can be at risk.

Why do you need this?

The Companies Act imposes personal liability for breach of fiduciary duty. When you accept a management or director’s position, you immediately assume a fiduciary duty in respect of the company. This means that anything you say or do must be in the best interest of the company, and with any business you undertake on the company’s behalf.