Directors & Officers Insurance NZ

What is Directors & Officers Insurance?

Directors and officers insurance (D&O insurance) protects company directors and officers personally against claims arising from their decisions and actions in their corporate roles. In New Zealand, directors have significant personal liabilities under the Companies Act 1993 and other legislation, and this insurance provides essential protection for their personal assets.

While companies often have other forms of liability insurance, directors and officers need their own personal protection because claims are often made directly against them, and corporate insurance may not cover individual liability.

What Does It Cover?

• Personal liability claims against directors and officers
• Legal defence costs
• Regulatory investigation costs
• Employment practices claims
• Civil proceedings and damages
• Costs of attending investigations and inquiries
• Entity coverage (company reimbursement)

Who Needs Directors & Officers Insurance?

D&O insurance is essential for anyone holding a director or officer position:

• • Company directors
• • Executive officers
• • Board members
• • Chief executives and CFOs
• • Senior managers
• • Charity and trust board members

Typical Costs

Directors and officers insurance costs vary based on company size, industry, and risk profile. Typical costs start from:

• • Small company: From $1,500/year
• • Medium company: From $3,000/year
• • Large company: From $5,000/year
• • Public/listed company: From $10,000/year