Page 99 - Policy Wording - Hollard Business Binder (2020-08-26)

2.
1.1 This section is designed for small to medium enterprises.
1.2 It provides cover directly to the directors and officers for loss, including defence costs, resulting from claims made against them for their wrongful acts in the course of their employment.
1.3 Cover applies where the business does not indemnify its directors and officers. Keep in mind laws (per area) may prohibit the business from doing so.
1.4 The Company's Act is developed and aimed at preventing maladministration or inappropriate application of funds and therefore, is not allowed to protect the directors and officers (helps create responsible management).
1.5 If the business absorbs these costs it may well result in liquidation, bankruptcy and the loss of jobs or income.
1.6 All claims are handled by the Specialist Liability claims handler who must be immediately notified upon receipt of a claim.
UNDERSTAND THE RISK
2.1
Who do we cover?
2.1.1 Past, present, and future directors, officers, employees, outside entity directors, spouses, administrators and executors of the Insured's estate.
2.1.2 The enterprise must be either a Private Company, Close Corporation or a Section 21 Company to qualify for cover.
2.1.3 The company must not trade outside RSA.
2.1.4 The company’s assets must not exceed R100 000 000 (one hundred million rand) and assets must exceed liabilities.
2.1.5 The minimum trading period is 24 (twenty four) months.
2.1.6 The latest trading statements must not contain any qualifications.
2.1.7 The maximum number of directors that can be accepted is 10. Should cover be required for more than 10 directors, refer to Hollard for a quotation.
Who's not covered
Members in a Close Corporation and partners in a Partnership. Should cover be required for a Close Corporation, please see point 3.6 for the applicable endorsement.
Scope of cover
This section follows Combined Liability/Employers Liability and as such is worldwide with the exclusion of the USA and Canada.
Events covered and extensions of cover payable with Hollard's consent:
2.2
2.3
2.4
2.4.1 2.4.2 2.4.3 2.4.4 2.4.5 2.4.6 2.4.7
the amount claimed against the director or officer which s/he becomes legally liable to pay; emergency legal cost up to 10% (ten percent) of the limit;
extended discovery period not exceeding 60 (sixty) days;
new subsidiaries and acquisitions;
advance of costs towards proceedings prior to actual court hearing; legal fees;
investigation costs.
Directors' and Officers' Liability
1.
GENERAL
DIRECTORS' AND OFFICERS' LIABILITY
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020