Company Directors and anyone who gives professional advice have special duties of care which arise, respectively, from the office they hold or from the professional capacity in which they advise their clients. Anyone who is exposed to these kinds of risks should ensure that they are comprehensively addressed in their business insurance policy.
A person or organisation who is injured or suffers damage or loss as a consequence of advice given in a professional capacity by you or your employees may have a valid claim against you for damages. The loss could be brought about by error, omission or negligence, but the damages awarded may be far greater than your personal resources. It is therefore vital both that you know your obligations and that you cover yourself to protect your personal wealth.
Directors’ and Officers’ ex Officio Liability
When they agree to serve a limited company, directors and other company officers carry a number of statutory duties. The effect of these is to make them personally liable for loss or damage brought about by errors or omissions made in the execution of their duties. This risk is insurable, and company officers should protect their wealth.
Companies also have obligations to their officers, and their insurance arrangements should cover an award of damages to directors who have suffered damage as a consequence of actions by the company.
To make sure that you and your fellow company officers have adequate liability insurance, call Sydney Insurance Brokers today and speak to one of our Directors’ and ex Officio Liability specialists.