Directors and officers, think CEOs, CFOs and board members, make tough calls every day to steer the company forward. But what happens when those decisions lead to legal challenges or financial claims? 

That’s where Directors and Officers (D&O) insurance steps in!

What is D&O Insurance?

D&O Insurance is a type of liability coverage designed to protect the personal assets of a company’s leaders. 

If a director or officer is sued for decisions or actions taken while running the business, D&O Insurance can cover legal costs, settlements and other expenses. 

It can protect those in charge, ensuring they can make bold decisions without constantly worrying about personal financial risks.

This coverage is especially important in today’s litigious world, where stakeholders (e.g., shareholders, employees or regulators) can hold company leaders accountable for perceived missteps. 

Why Do Directors and Officers Need D&O Insurance?

Leading a company isn’t just about strategy and growth. It also involves risks. 

Directors and officers can be sued for things like:

1. Mismanagement Claims: Shareholders might argue that poor decisions led to financial losses.
   
   
2. Regulatory Breaches: Failing to comply with laws or regulations, even unintentionally, can trigger investigations.
   
   
3. Employment Disputes: Claims of wrongful termination or discrimination from employees.
   
   
4. Fiduciary Duty Breaches: Allegations that leaders didn’t act in the best interests of the company or its stakeholders.

Claims against directors and officers have risen globally, with Australia seeing a notable increase in shareholder lawsuits and regulatory scrutiny. 

The average cost of a D&O claim in Australia can range from $100,000 to several million, depending on the case’s complexity. 

Without the right D&O Insurance, these costs could fall directly on the individual leader’s shoulders. That’s why as insurance brokers, we, at Tank Insurance, specialise in helping businesses like yours find tailored D&O Insurance solutions that fit your needs and budget.

Want to learn more or get a quote? Contact our team today to discuss how D&O Insurance can support your company’s leadership, and read our blog.

Let’s work together to keep your business moving forward with confidence!