Directors & Officers

Issuing and presenting a prospectus is a complex process for all involved. In this everchanging economic and regulatory landscape the representations made in a prospectus will be thoroughly scrutinised by both investors and regulators, with the potential of any claims made in connection with the prospectus brought years after the prospectus was first issued.
Liberty’s 06-23 Offering of Securities (OSI) policy wording provides bespoke coverage for offerings including cover for Directors & Officers, controlling or selling shareholders and the company itself, ringfencing the prospectus exposure away from a traditional Directors & Officers Liability policy.

Being a director on a listed entity attracts heightened exposure to litigation and class action risks. With no immediate changes to the legal environment to deter litigation funders from instigating class actions and eroding policy limits on a Directors and Officers (“D&O”) Liability policy, Liberty’s Side A Excess cover provides isolated protection solely for the directors and officers to protect their legal liability and personal assets.

The 2014 Bridgecorp ruling (regarding competing claims between defence costs and third party claims on a policy) has potential implications for Australian entities with exposure to New Zealand legislation. The ruling may not be confined to Directors & Officers Liability policies as the legislation can prevent the holder of any liability policy from accessing defence costs where the limit of liability is defence costs inclusive, which is the case for many liability policies, including professional liability policies.
Liberty‘s Umbrella Defence Costs policy is our unique response to this development.