Wrongful Act (D&O)

A Wrongful Act is a broad term in Management Liability policies. It covers almost any mistake or failure in doing a director's job. This includes breach of fiduciary duty. It also includes breach of statutory duties under the Corporations Act 2001 (Cth). Other examples are negligent misstatement, misleading conduct, misrepresentation, poor disclosure, and failures of oversight. Cover applies to alleged wrongful acts. This means insurers will defend a claim even if it later proves untrue. D&O wrongful acts relate to governance and management. This differs from Professional Indemnity insurance, which covers errors in a professional service. In Australia, common examples include ASIC action over disclosure failures. Other examples are shareholder claims for breach of directors' duties, and Fair Work complaints over workplace choices. Exclusions usually apply to proven dishonest acts. They also apply to deliberate unlawful conduct and illegal personal profit.

A Wrongful Act is a broad term in Management Liability policies. It covers almost any mistake or failure in doing a director's job. This includes breach of fiduciary duty. It also includes breach of statutory duties under the Corporations Act 2001 (Cth). Other examples are negligent misstatement, misleading conduct, misrepresentation, poor disclosure, and failures of oversight. Cover applies to alleged wrongful acts. This means insurers will defend a claim even if it later proves untrue. D&O wrongful acts relate to governance and management. This differs from Professional Indemnity insurance, which covers errors in a professional service. In Australia, common examples include ASIC action over disclosure failures. Other examples are shareholder claims for breach of directors' duties, and Fair Work complaints over workplace choices. Exclusions usually apply to proven dishonest acts. They also apply to deliberate unlawful conduct and illegal personal profit.