Directors' & Officers' insurance
Shared culpability is how the legal system views directors and officers of an organisation - even non-executive directors can be held liable for the actions of other directors. Which means you could end up fighting a court battle over something your colleague did, even if you didn’t know they were doing it.
One for all and all for one. Or 'jointly and severally liable', to use the legal term.
The last few years have seen a rise in claims on directors’ and officers’ policies, due to the changing regulatory environment and increased oversight by regulators.
There are plenty of insurers willing to take on this risk: the challenge is choosing the right one.
What does Directors’ and Officers’ insurance cover?
Directors’ and Officers’ (D&O) Liability Insurance gives financial protection in the event you are sued personally. D&O protects you from claims made against you or your co-directors within the scope of your everyday business. It is there to cover you for legal costs as well as any damages.
What does good D&O insurance look like? What to look out for:
D&O insurance is there to pay for costs relating to mounting a defence, and any damages or settlements relating to the matter. Any allegation made by a third party against a director or officer, no matter how frivolous, needs to be vigorously defended. Otherwise, there is a risk of judgement being entered in default of a defence.
- Damages and claimant’s costs
- Legal costs for a successful defence against allegations
- Representation at official investigations and inquiries
- Entity cover for employment practices liability claims
- Allegations made by fellow directors, officers, or employees
- Retired directors
- Libel and slander
- Intellectual property
- Joint venture liability
- Outside directorships
- Occupational Health and Safety defence costs
The legal and regulatory environment is changing. Make sure you are protected.
Other areas that give rise to claims include:
- Positions on outside boards
- Wrongful termination, sexual harassment or discrimination
- Initial P.O.
Directors and officers can be held liable for their own actions and inactions – and the actions of their co-directors. Directors’ personal liability for the performance of a company is unlimited. If the shareholders want to sue for mismanagement, they can, and do, quite frequently.
Protect your family from your business
Because you never know what's round the corner
Meet the team
Senior Vice President, Strategic Business Development
Firman joined Howden in December 2013 as Assistant Vice President in the Strategic Business Development. He is responsible to develop the business strategically across the company. Part of his responsibility is to develop initiatives towards clients.
Prior to joining Howden, Firman worked at Aon as Manager at Corporate Risks Services Division, where handle various major clients as well as Lippo group business. Part of his focus is also to develop affinity initiatives with corporate risks services. Previously, he also worked for JLT to handle corporate and industrial clients for 4 years and prior to that he was working for one of the major bank in Bandung, Panin Bank as internal auditor. He has more than 7 years experience.
Firman graduated from Bina Nusantara University, majoring in computerized accounting. He has just completed one of the professional qualifications from ANZIIF, CIP, Ahli Pialang Asuransi dan Reasuransi Indonesia (APAI) and Certified Indonesian Insurance & Reinsurance Broker (CIIB).
Senior Vice President, Financial, SME, & Affinity Risks
Subur joined Howden September 2012. Subur leads Financial Risks, Small Medium Enterprise and Affinity Risks division, as Assistant Vice President. Part of his responsibilty in SME, Affinity is to handle large chain-business risks like chain-shops, warehouses, restaurants as well as motor fleet risks. Subur is one of the key initiator to develop online based insurance facility which beneficial to our clients.
He is also responsible to develop specialty financial risks to adopt the group expertise and deploy to local business focus, such as Directors & Officers, Professional Indemnity, Trade Credit risks and the like.
Prior to joining Howden, Subur was working for JLT to focus on corporate and energy risk where handle major and complex risks clients. Previously also he worked for a Japanese insurance company, MSIG Insurance, focusing on small and medium enterprise. He has more than 7 years experience.
Area of expertise includes property insurance, motor vehicles insurance and various insurances for small and medium enterprise.
Subur graduated from Universitas Brawijaya with Finance major. He also holds from the same university a master degree in Corporate Finance. He holds professional qualification Ahli Pialang Asuransi dan Reasuransi Indonesia (APAI) and Certified Indonesian Insurance & Reinsurance Broker (CIIB).
Business Manager, Financial Risks
Gilang joined Howden in April 2015 as Account Executive in Financial SME & Affinity Risks Division. Having been promoted in January 2019 as Business Manager, he was given a new role to lead Financial Specialty Risks & JBI . He is responsible for client servicing in Financial Specialty Risks area and making sure to meet our client expectation.
Prior to joining Howden, Gilang worked with PT. Asuransi Jasa Indonesia (Persero) for 5 years as marketing.
Gilang completed his Bachelor Degree of Sociology Program at Faculty of Social & Political Sciences in University of Indonesia. He also holds professional qualification Ahli Pialang Asuransi dan Reassurance Indonesia (APAI). Gilang also qualified at Level 5 for professional Insurance Broker certification based on Indonesian regulation.