Liability Insurance

There are five types of liability insurance policies which Harlocks can offer and they are

	Directors' And Officers' Liability Insurance
	Employment Practices Liability Insurance
	Superannuation Trustees Liability Insurance
	Office Bearers' Liability Insurance
	InfoTech Liability Package

Directors' And Officers' Liability Insurance

A directors and officers policy (‘D&O’) is designed to protect the personal assets of insured persons by providing indemnity against any loss arising from a claim as a result of a wrongful act committed while the insured is carrying out their duties and obligations in their position as a director or officer. In today’s litigious and regulatory environment, directors and officers are held personally liable for the management of the affairs of the company. This exposure is not limited to large corporations. Directors and officers of small ‘mum and dad’ companies are similarly exposed.

That is why it is necessary for directors or officers to have a very real appreciation of their duties and responsibilities as they take on their onerous roles. Innocent mistakes and/or the potential to be joined by another party in an action against another director or the corporation may be potentially expensive.

Who is covered in the policy?

	Any past director, secretary, executive officer or employee of the corporation.
	Any current director, secretary, executive officer or employee of the corporation.
	Any future director, secretary, executive officer or employee of the corporation.
	Any person who by virtue of any applicable legislation is deemed to be a director or officer of the corporation.

For more information or a quote on this product please contact us.

Employment Practices Liability Insurance

This cover can be purchased as standalone, or as part of the directors and officers policy. It covers the entity for specific employment practices related claims.

For more information or a quote on this product please contact us.

Superannuation Trustees Liability Insurance

Trustees of superannuation funds owe a fiduciary duty of care to fund members to protect the assets of the Trust and to maximise returns for the members. The duties and responsibilities of a trustee are set out in the Trust deed and under numerous legislative statutes. Such duties include:

	To act honestly.
	To exercise a reasonable degree of care, skill and diligence.
	To act in the best interests of beneficiaries of the Trust; i.e. the duty of the trustees towards their beneficiaries is paramount. They must of course obey the law, but subject to that they must put the interests of their beneficiaries first.
	To act impartially between the beneficiaries.
	Not to profit except as the Trust deed allows.
	Duty to avoid a conflict of interest; i.e. a person who is in a fiduciary position is not allowed to put himself in a position where his interests and duties conflict.
	To formulate and give effect to an investment strategy.
	To manage reserves responsibly.

It is crucial for trustees to have a very real appreciation of their duties and responsibilities as they take on this onerous role. However, no matter how cautious a trustee might be in his or her dealings concerning the Trust, mistakes do happen. There is also the potential for the trustee to be joined by a third party in a claim against the Trust. Both of these situations are potentially expensive and a trustee’s personal assets might well be exposed.

A Superannuation Trustees’ Liability policy indemnifies trustees for their personal legal liabilities incurred as a result of a wrongful act committed in the course of carrying out their duties.

The policy is divided into two insuring agreements. Insuring Agreement A provides for reimbursement of the trust and /or employer for sums that they become legally obligated to pay arising from legal liability incurred by the trustees. Insuring Agreement B provides indemnity for the trustees for sums that they become legally obligated to pay which the Trust and/or employer may not indemnify them against. In addition, the policy provides cover for defence costs incurred by the trustees, subject to the prior written consent of the underwriter.

For more information or a quote on this product please contact us.

Office Bearers' Liability Insurance

An Office Bearers‘ Liability policy (‘OBL’) is designed to protect the personal assets of officers, by providing indemnity for any loss arising from a claim as a result of a wrongful act, committed while they are carrying out their duties and obligations as officers. In today’s litigious and regulatory environment, officers are held personally liable for the management of the affairs of the body corporate.

That is why it is necessary for officers to have a very real appreciation of their duties and responsibilities as they take on their role. While the Corporations Law does not apply to a body corporate, the officers, as committee members for the body corporate, still have an obligation at Common Law to act honestly and in good faith when carrying out their obligations. Legal action in the past has been taken against officers alleging, for example, libel and slander, lack of care in the management of body corporate property, mismanagement of funds and the failure to effect and maintain adequate insurance.

In the event that the officers are acquitted of a wrongdoing and where a body corporate has legally reimbursed the expenses of its officers, it may then claim under the corporate reimbursement, Insuring Agreement B of the OBL policy. Where the officers are not acquitted, the body corporate may not legally reimburse the officers. In this circumstance, Insuring Agreement A of the OBL policy, may respond to the claim.

For more information or a quote on this product please contact us.