Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Survey shows 24% of directors don’t have insurance

Survey shows 24% of directors don’t have insurance

Source: Insurance Council of NZ

--

One in four directors may have to meet damages, legal costs and fines as well as costs incurred by their own organisations from their own pocket because they don’t have the right insurance cover.

Recently, the Institute of Directors released a report which highlighted that 24% of executive and non-executive directors do not have directors’ and officers’ liability (D&O) insurance.

"This is a concerningly high number of people," said Tim Grafton, ICNZ Chief Executive. "D&O insurance is of vital importance for directors. Their responsibilities and accountabilities have grown substantially in the last few years and without D&O cover they may find themselves personally responsible for what goes wrong."

D&O insurance covers past, present and future board directors and officers of a company or not-for-profit organisation for any liability they may have stemming from their own or the business’s wrongful actions or decisions. Claims against directors or officers can be made by members of the public, employees, shareholders, creditors and even competitors.

Directors have responsibilities under a wide range of Acts, including the Companies Act, the Commerce Act, the Fair Trading Act and the Health and Safety at Work Act. This may include, among other things, responsibility for the health and safety of their staff, employment issues, regulatory reporting and adherence to laws governing the business’s operations, and governance decisions.

"These obligations apply to all directors including those who are appointed to not-for-profit organisations," he said.

While D&O cover will include fines in most instances, insurance is prohibited from covering fines under the Health and Safety at Work Act. D&O insurance will also not cover directors or officers for criminal, intentionally non-compliant or fraudulent acts.

We strongly recommend anyone operating as a director investigate their liabilities and take out D&O insurance to cover them.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Climate Summary: NZ’s Equal-2nd Warmest Year On Record

Annual temperatures were above average (+0.51°C to +1.20°C above the annual average) across the majority of New Zealand... 2018 was the equal 2nd-warmest year on record for New Zealand, based on NIWA’s seven-station series which began in 1909. More>>

ALSO:

GDP: Economic Growth Dampens In The September Quarter

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today... GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter. More>>

ALSO:

Up $1.20: $17.70 Minimum Wage For 2019

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO:

Retail: IKEA To Open In New Zealand

Inter IKEA Systems B.V. is today announcing its intentions to grant the Ingka Group exclusive rights to explore expansion opportunities in New Zealand. More>>