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Management Liability Insurance /Directors & Officers Liability Insurance

Policies

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Directors & Officers Liability InsurancePolicies

Directors & Officers Liability Insurance provides protection for the personalassets of directors and officers by providing indemnity for loss arising from aclaim as a result of a 'wrongful act' committed by them in the course ofconducting their business.

All Company Directors and Officers have an exposure to potential claims and

legal action regardless of their company's size and business activities.Corporate governance and regulatory surveillance places immenseaccountability and pressure on business and company directors and officersto perform their duties thoroughly.

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Types of Exposures to Claims

Claims can arise from many sources and include:

Breach (alleged or actual) of the Trade Practices/Fair Trading Legislation

Enquiries by regulatory authorities (e.g. ASIC, ATO, ACCC)

Breach of Contract

Shareholder disputes

Defamation

Competitors

Creditors

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Insurance Protection

Directors and Officers Insurance aims to provide protection for:

Loss arising from a Wrongful Act committed by them in the course ofconducting their business;

Settlements, compensation and/or damages awarded against them; and

Legal costs and other expenses associated with defending a claim.

The definition of a Wrongful Act varies from one insurance company toanother. However it is commonly defined as any misstatement, misleadingstatement, omission, an actual or alleged breach of duty committed, allegedto be committed or attempted by or any other matter claimed against anyinsured person, individually or collective as an insured person whilst acting intheir capacity.

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Management Liability Insurance Policies

Management Liability Insurance is a comprehensive insurance product that

has been designed specifically for private companies and their directors andofficers. It combines Directors and Officers Liability Insurance with severalother policies, to provide a broad range of cover for management under theone policy.

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Directors & Officers / ManagementLiability Insurance Quote

To obtain a quotation, enquire online at www.it.optimuminsurance.com.au.

In most circumstances we are able to provide an quote over the phone. Ifyou would like to discuss your needs further, contact us on 1300 739 861.

Policy coverage is always subject to the terms, conditions and exclusions ofthe insurance contract and policy wording provided by the insurer.

Each insurance company has its own policy wording. This means thatcoverage can vary considerably from one insurer to another. It is vital thatyou compare each policy based on the appropriateness of cover for your

individual or business needs.

As Insurance Advisers, it is our role to understand the terms and conditions,so contact us now for advice and a quote.

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Frequently Asked Questions

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Claims Made Policies

The following types of insurance are commonly termed "Claims Made"

Contracts of insurance:

Professional Indemnity Insurance

Association / Non-Profit Liability Insurance

Directors and Officers Liability Insurance

Management Liability Insurance Employment Practices Liability Insurance

Fidelity Insurance

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What is a Known Circumstance?

A 'Known Circumstance' could be defined as any fact, situation or

circumstance, which a reasonable person in the insureds professionalposition would have thought, might result in someone making a claim againsthim/her. Therefore if a claim arises after the inception date of the policy froma fact, situation or circumstance that the insured knew or should haveknown, at the time of the commencement of the policy that might give rise toa claim, it would normally be excluded as it arose from a Known

Circumstance.

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Why is Notifying all Known CircumstancesImportant?

By notifying all circumstances that might give rise to a claim, during a policyperiod, an insured can get the benefit of their statutory rights under Section40(3) of the Insurance Contracts Act 1984 (the Act). Section 40(3) providesan insured with statutory rights to notify a circumstance or insured, to aninsurer, during the currency of the policy.

If a claim eventuates against an insured from the notified circumstances,then the insurer cannot deny indemnity, despite the fact that the claim aroseoutside the period of insurance. Therefore, any fact, situation orcircumstance, which a reasonable person in the insured's professionalposition would have thought might result in someone making a claim against

them, should be notified to their current insurer.

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Changing from One Insurer to Another(Notification of Known Circumstances)

If you change insurers, you will need to notify your insurer of everyconceivable circumstance before the expiry date of your policy. If this is notdone, and if a claim was to occur in the future from a circumstance notpreviously notified, you may be left uninsured, with neither the previous orthe current insurer accepting liability for the claim. The prior insurer maydeny the claim as the insured failed to notify the circumstance or claim during

the period of insurance.

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Contact UsPhone +61 1300 739 861

Fax +61 1300 732 225Hours 9.00am to 5.00pm (EST)

Monday FridayEmail [email protected]

Website www.it.optimuminsurance.com.au

Presentation Disclaimer This material contains general information only and may not suit your

particular circumstances. To decide if a policy is right for you please carefully read the relevant Product

Disclosure Statement (PDS) and/or Policy wording. A copy of the PDS or policy wording is available by

contacting our office on 1300 739 861;

Disclosure Statement Optimum Insurance Services Pty Ltd is a Corporate Authorised

Representative of Insurance Advisernet Australia Pty Ltd (Car No. 291220), Australian Financial Services

Licence No 240549, ABN 15 003 886 687.