Introducing Vero’s refreshed Directors and Officers Liability Insurance
At Vero, we’re committed to delivering competitive and insightful insurance solutions. That’s why we’re pleased to introduce the refreshed wording for our Directors and Officers (D&O) Liability Insurance policy.
This update introduces a clearer policy structure, updated investigations coverage, and new extensions.
Clearer policy structure
We’ve restructured parts of the policy wording to help improve clarity and to help make navigation easier. Covers that were previously embedded within broader clauses now appear as standalone insuring clauses or extensions.
This change makes it easier for brokers and their clients to quickly identify coverages in both the schedule and the table of contents.
The following existing covers now have their own dedicated clauses:
- Investigations
- Internal investigations
- Extradition costs
- Fines and penalties
- Prosecution costs
Updated investigations coverage
An important component of D&O coverage – Investigations – is now a standalone insuring clause, enhancing its visibility.
The exclusion relating to OAIC (Office of the Australian Information Commissioner) investigations for notifiable data breaches has been removed.
Internal investigations cover is also now a dedicated extension, with scope expanded to include:
- investigations following notification by the company, an insured person or whistleblower to an official body of an actual or suspected wrongful act or breach of legal, statutory or regulatory duties by an insured person or the company; and
- investigations into whether the company is legally required to formally notify any official body of an actual or suspected wrongful act or breach of legal, statutory or regulatory duties by an insured person or the company.
New extensions
Several new extensions have been added to the policy as follows.
Deprivation of assets expenses
This extension provides cover for some of the insured person’s essential personal expenses (e.g. mortgage, utilities, school fees) if their assets are frozen under an asset freezing or similar order.
Derivative action investigation costs
This new cover provides protection for costs incurred by the insured entity to determine how to respond to a derivative shareholder action against an insured person.
Environmental liability
This extension introduces cover for defence costs, investigation costs, fines and penalties for environmental violations, addressing exposures that might otherwise be excluded by the bodily injury and property damage exclusion.
Insolvency hearing cover
This extension provides cover for representation costs for insured persons involved in inquiries or investigations by liquidators, insolvency administrators or receivers.
Mitigation costs
We’ve also introduced a cover for expenses related to proactive steps taken to prevent or reduce the impact of a potential claim.
Raid response costs
This new extension provides cover for the costs of responding to an on-site raid by an official body – including fees for legal advisers, accountants, crisis managers, and PR and media consultants.
Changes to claims notifications and conduct clauses
The D&O claims notification clause now includes a provision allowing notification of facts or circumstances that may give rise to a claim or other matter covered under the policy.
The claims conduct clause has been updated to outline the process for requesting the appointment of a non-panel law firm.
What this change means for brokers and their clients
Vero’s refreshed D&O Liability Insurance offer clients a clearer policy structure and new extensions for certain exposures.
For more information on our updated D&O policy wording please contact your Vero representative.
Insurance issued by AAI Limited ABN 48 005 297 807 trading as Vero Insurance. Limits, conditions and exclusions apply. Read the Product Disclosure Statement before buying this insurance. Target Market Determination is also available. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it. The information is intended to be of a general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon it – please make your own enquiries.
