Directors and Officers Liability Insurance
24 November 2003 at 12:11 pm
Given the current climate of finger pointing and blame apportioning in the world of corporate collapses should the Not for Profit Sector also providing its board members with Directors and Officers Liability Insurance? According to the Australian Institute of Company Directors the answer is a resounding yes!
AICD’s Membership and Marketing Manager, John Harle says many charitable organisations don’t understand the extent of or the kind of legal ‘exposures’ that their directors are open to.
Harle says it is even more important for board members who are without remuneration to be adequately covered by liability insurance, even if it is only for the most basic of ‘risks’ such as protection against any costs in a legal action.
He asks how can organisations expect people to accept responsibility if they are not accorded some protection.
The issue was first raised with a Pro Bono Australia reader asking for advice on where to find Directors and officers Liability Insurance.
Roy Rogerson from EDAR writes that he has recently taken over as CEO of EDAR and is currently reviewing introducing Directors and Officers Liability Insurance into our organisation. EDAR is a Not for Profit organisation and a company limited by guarantee which offers day care service for people with intellectual disabilities.
Do you know of any organisations which offers Directors and Officers Liability Insurance for organisations like ours and are you able to provide me with contact details?
In Victoria Heath Lambert Insurance offers this insurance to Not for profit organisations. Call 03 9649 3666. Other insurers include QBE, CGU and Gerling Australia Insurance.
The Australian Institute of Company Directors also produces a Guide to Directors and Officers Liability Insurance at a cost of $20.
However AICD is offering Part One of the Guide free along with a booklet on its services. All you have to do is provide you postal address and contact details via email requesting a copy of the Free Part One Guide to Directors and Officers Liability Insurance to email@example.com.