Rising litigation and class actions in Australia have pushed D&O premiums upward. This trend forces companies to adapt their risk management and seek tailored policies. Consequently, higher costs may affect strategic decision-making and financial planning.

D&O policies typically cover legal defence costs, settlements, and judgments for wrongful acts. However, they often exclude fines, regulatory penalties, and claims arising from fraud or deliberate misconduct. It’s essential to review policy terms closely to ensure adequate protection.

D&O insurance is crucial not only for large public firms but also for private companies and SMEs. Directors in smaller organizations face personal liabilities that can jeopardize their assets. Securing appropriate coverage is vital regardless of company size.

Determining the right coverage involves assessing your company’s risk profile and potential claim amounts. Understanding the differences between Side A (personal), Side B (company), and Side C (entity) coverage is key. Expert guidance can help tailor a policy that balances cost with robust protection.

Class actions significantly increase insurers’ risk exposure, leading to higher premiums and stricter terms. This environment makes it challenging to secure affordable D&O insurance. Companies must strengthen risk management practices to negotiate favourable policy terms.

D&O policies that appear ‘cheap’ in the first instance might be more costly if inadequate cover is provided. Insurance premiums are important but must be considered contextually. The premium is never the focus when a D&O claim or regulatory investigation occurs. Directors and Officers' main concerns are always, "Am I covered?" and "How quickly can the policy respond?".