January 14, 2022
In circumstances where there are many circumstances where a company cannot indemnify its directors or offices, obtaining this type of insurance has been essential in Ireland for many years now. D & O insurance policies are often misunderstood. Clients should obtain good practical legal and insurance expertise where required.
Since the codification of rules surrounding indemnification in the Irish Companies Act 2014, the insurance industry have been busy ensuring that the policy wordings provide the appropriate protection for Insured companies. Although Ireland has not witnessed anywhere near the level of claims in this area in the UK, the degree of insurance notifications have increased.
It is likely that some of the repercussions of Covid on the business sectors have not yet crystalised meaning that companies will need to obtain very specialist assistance in this area both from the insurance and the legal industry.
In a potentially unpredictable market other jurisdictions have seen a rise in claims by investors, regulatory actions, shareholder actions, securities actions, stock market consequences, along with side A claims against directors/officers etc where the company is unable to indemnify. Directors and Officers as stewards of organisations will continue to face tough decisions as they continue to conduct their operational, financial and contingency planning.
Policy coverage remains of key importance so it is important that stakeholders work together in such an environment.