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What is Directors’ and Officers’ insurance?
When undertaking an appointment as a Director or Officer of any organisation you, and your personal assets, may be at risk.
Directors’ and Officers’ appointments tend to be conducted outside of normal practice engagements so a Professional Indemnity insurance is unlikely to provide any cover. A Directors’ and Officers’ policy will, however, provide some protection for you, and your assets, against a breach of the duty you owe to others in respect of that appointment.
What is a non-profit organisation?
- One which is income tax exempt
- One which is set up for a specific purpose or objective (such as serving the interests of their members or the public)
- One which is an incorporated entity under various Australian state Association Incorporation Acts or as a public company
- One which is limited by guarantee under the Corporations Act (Australia).
Directors’ and Officers’ insurance – the facts
- Professional Indemnity insurance is not designed to cover the exposure for any breach, act error or omission for which you might be held liable with respect to holding an outside directorship position for non-profit organisations such as clubs, schools, churches, etc.
- Directors and Officers have a responsibility to governing bodies such as the Australia Securities & Investments Commission (ASIC) and other regulatory bodies, stakeholders, shareholders, compliance organisations, members, competitors and others.
- When undertaking such directorship positions, as a Director or Officer, you, and your personal assets may be at risk.
To obtain a quote for this insurance please complete and submit your application to Fenton Green for negotiation with insurers. Click here here to download the form required.
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