Directors & Officers (D&O) Liability

Directors & Officers (D&O) insurance protects the personal assets of company directors and officers when they are sued for alleged wrongful acts in their management roles. In New Zealand, directors face significant personal liability under the Companies Act 1993, the Financial Markets Conduct Act, and other legislation. D&O cover ensures that a claim against you personally won't put your home or savings at risk.

Typical premium: $800–$3,500/year

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Key Benefits

✓Covers legal defence costs and settlements
✓Protects personal assets from company-related claims
✓Covers regulatory investigations by the FMA or Commerce Commission
✓Side A (personal) + Side B (company reimbursement) cover options
✓Entity coverage available for the company itself
✓Runs-off cover available after resignation or company wind-up

Who Needs This Cover?

→Directors of NZ registered companies
→Chief executives and senior officers
→Non-executive and independent directors
→Trustees of trusts and charities
→Committee and board members
→Startup founders and co-founders

Typical Claims

📋 Shareholder dispute alleging breach of fiduciary duty

📋 Employee claiming unfair dismissal against a director personally

📋 Creditor action after company insolvency

📋 FMA investigation into disclosure or conduct

📋 Regulatory penalty under the Health & Safety at Work Act

Directors & Officers (D&O) Liability — FAQs

It is not legally required, but many lenders, investors, and larger customers now make it a condition of doing business. It is strongly recommended for any director with personal assets to protect.

D&O policies typically exclude deliberately fraudulent or criminal acts once proven. However, defence costs are usually covered until fraud is established by a court.

D&O is written on a claims-made basis, meaning the policy in force when the claim is first made (not when the act occurred) responds. Continuous cover is important.

Other Coverage Types

🗂️Management Liability 📋Professional Indemnity ⚖️Statutory Liability

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