Director’s and Officer’s Liability
THE POLICY
Our Directors' and Officers' Liability Insurance policy is designed to indemnify Directors and Officers for claims made against them by reason of a wrongful act committed or alleged to have been committed in their capacity as a Director or Officer of the organisation.
A wrongful act as defined by our policy is, "any actual or alleged breach of duty, breach of trust, neglect, error, misstatement, misleading statement, omission, breach of warranty of authority or other act done or wrongly attempted by any Director or Officer".
Who is a Director?
The term director includes past, present or future directors or members of the board or committee of management of the company.
Who is an Officer?
An officer is any past, present or future secretary, executive officer or employee of the company.
WHO NEEDS THIS COVER?
All Church organisations including schools and hospitals with an exposure to claims arising from wrongful acts by Directors' or Officers'.
LIMITS OF LIABILITY
The limit of liability is the total amount of cover for any one period of insurance. The limit applies to costs and damages and it is important to note that all individuals covered by the policy share the one sum insured.
STAMP DUTY
Where applicable stamp duty is added to the premium.
FEATURES and BENEFITS
Directors' & Officers' Liability Insurance provides personal protection for Directors' and Officers' for legal liability which they may incur whilst they are carrying out their duties as a Director or Officer.
IMPORTANT POINTS
Actions may be brought against Directors and Officers by employees, customers, competitors, shareholders, creditors, members of the public, the trade practices commissioner, commissioners for taxation etc.
The circumstances in which actions may arise are numerous but some examples include creditors alleging the improper incurring of debts, employees alleging unfair dismissal or discrimination, misrepresentation in advertising material, failure to arrange adequate insurance, ill advised or unauthorised investment decision.
The general obligations include, to exercise reasonable care and diligence in the exercise of powers and the discharge of duties, not to make improper use of inside information, to act honestly, to act in the interests of the company, to avoid conflicts of interest and duty.
The Directors' and Officers' Liability policy is a claims made policy meaning that the claim must have first been made against the Insured during the period of insurance. It must also have been notified to us during that period of insurance and not been made or threatened before the inception date of the policy or arising from a circumstance which existed prior to, or at the inception of the policy which a Director or Officer knew or ought to have known could give rise to a claim.
TAKING OUT A POLICY
Catholic Church Insurances Limited will assist in obtaining information necessary for providing a quotation or issuing a policy.
It is most important that we be advised in writing as soon as possible of every occurrence, writ, summons, proceedings, impending prosecution or inquest where liability may arise under this policy.
We need to thoroughly investigate the event as soon after it has occurred as possible whilst it is still fresh in people's minds. This will then allow us to prepare a better defence of the claim if we consider that this is required.
Please note: this information sheet is not intended to replace the policy wording. It is designed for information purposes only and should be read in conjunction with the policy wording. For further information or a full copy of the policy wording please contact Catholic Church Insurances Limited on 1300 655 001.
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