Protecting directors from personal claims arising from insolvent trading
Liberty has introduced a Company Insolvency Safe Harbour Extension to its Directors and Officers (D&O) liability insurance in Australia — the industry’s first D&O extension of its kind.
The new cover is designed to give company directors the practical protection and expert support they need when navigating financial distress and pursuing a structured turnaround.
This extension is designed to cover the reasonable costs and expenses incurred by the company in engaging an approved ‘Safe Harbour Advisor’ for the purposes of obtaining advice under the Safe Harbour insolvency regime, section 588GA of the Corporations Act 2001 (Cth). This regime protects company directors from personal liability for insolvent trading when they pursue a course of action that is reasonably likely to yield a better outcome for the company than immediately appointing an administrator or liquidator, provided specific conditions are met.
Key benefits of this cover:
- Cover for the reasonable costs and expenses incurred by the Company in engaging an approved ‘Safe Harbour Advisor’ to provide advice under section 588GA
- Access to specialist advice through Liberty’s partnerships with leading Australian advisory and restructuring firms
Liberty’s Company Insolvency Safe Harbour cover is now available as an extension to qualifying Liberty D&O insurance policies in Australia.
Liberty’s D&O policy is part of the suite of market leading professional and financial risk covers that also include Professional Indemnity, Employment Practices Liability, Statutory Liability, Cyber and Crime.
Find out more about this cover in our Safe Harbour Fact Sheet.
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