Directors Insurance
New Zealand

It is not legally required, but it is strongly recommended for all NZ company directors. Many investors, lenders, and major customers now require D&O insurance as a condition of doing business or providing capital.

A standard D&O policy covers: (1) legal defence costs when a director is personally sued, (2) settlements or judgments awarded against a director, (3) regulatory investigation costs including FMA or Commerce Commission inquiries, and (4) reimbursement to the company for indemnifying directors.

D&O policies typically exclude: deliberately fraudulent or criminal acts (once proven by a court), personal profits gained illegally, bodily injury and property damage (covered by other policies), and claims made prior to the policy's retroactive date.

Premiums vary based on company size, industry, turnover, and claims history. For a typical NZ SME, D&O insurance starts from around $800/year. Management liability packages (D&O + employment practices + statutory liability + crime) typically start from $1,200–$2,000/year.

Key pricing factors include: company revenue and assets, industry sector and risk profile, number of directors and employees, claims history, coverage limits required, and whether optional extensions (EPL, statutory, crime) are included.