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Directors and Officers Liability Cover

Directors & Officers Liability (often referred to as “D&O”) provides financial protection for the Directors and Officers of a company. 

Since a director can be held personally responsible for acts of the company, most Directors and Officers will demand to be protected rather than put their personal assets at stake.

The D&O cover offered by Genlib is aligned with the Companies Act 71 of 2008.

 

 WHO NEEDS THE COVER
  • Past, present and future directors
  • Employees and volunteers in a managerial / supervisory capacity, audit committee or risk committee
  • President / CFO / CEO / Company Secretary
 WHAT IS AT STAKE
  • Personal liability : property, cars, assets, savings & pension funds are at risk
  • Spouse, heirs and estates (may be named in a suit)
  • Financial implications of defence costs could be catastrophic
  • Should your assets be frozen, are you able to cover the costs of schooling, housing, utilities and personal insurance ?
 WHAT IS THE FUNCTION OF THE POLICY

It protects the decision makers against ALLEGATIONS of

  • Willful misconduct and breach of trust
  • Reckless trading
  • Breach of Authority
  • Illegal acts (if found guilty, insured would have to reimburse insurer)
  • Discrimination
  • Sexual harassment

Or INDEMNIFIES the Insured against

  • Wrongful acts – which include breach of duty E&O, misstatement, misleading statement, errors in judgment
  • Damage and Injuries to third parties (legal defense costs)
  • Legal defense costs – it’s not just about damages / liabilities

Insured through Stalker Hutchison Admiral (Pty) Ltd on behalf of Santam Ltd.