SUM Insurance


What D&O Insurance Does:
  • Protects the personal assets of a company's directors and officers from potential unlimited liability;
  • Protects the company's assets;
  • Provides reimbursement to the organization to indemnify directors and officers for their losses; and
  • Helps the company monitor and provide defense costs associated with responding to lawsuits and investigations.

Why Private Companies and Not-for-Profit Organizations Should Consider Buying D&O Liability Coverage:

  • The cost of defending corporate lawsuits may exceed the net worth of most private companies;
  • Judgments and settlements can be financially crippling;
  • Corporate indemnification may not be available;
  • Adverse shareholders and other potential claimants may exist;
  • Bad business decisions are likely to be more visible due to small business environment thus attracting the attention of shareholders, regulators and other third parties;
  • Business decisions made by directors and officers can quickly impact the finances and operations of a company;
  • Directors and Officers work in demanding environments as they cover more corporate duties;
  • Unique conflicts of interest may exist due to complexity of responsibilities;
  • and
  • Companies will have a difficult time attracting qualified individuals to their Boards without D&O or EPL coverage.

Sources of D&O and EPLI Claims:

  • From Shareholders, Investors, Partners and Members
  • Mergers / Acquisitions - Conflict of interest
  • Financial performance - Bankruptcy
  • Executive compensation
  • Inadequate / Inaccurate disclosure
  • Stock or other offerings - Financial reporting
  • Customers, Clients and Consumer groups
  • Extension, refusal of credit - Restraint of trade
  • Debt collection - Dishonesty
  • Deceptive trade practices
  • Cost, quality of product or service
  • Contract dispute - Lender liability
  • Other Third Party Claims against Directors and Officers (including competitors)
  • Anti-trust
  • Prospective company acquisition
  • Copyright / patent infringement
  • Company defamation
  • Business interference - Tax issues
  • Competitor disputes
  • Regulatory / other government issues
  • Employees, contractors and co-workers for employment practice disputes

Products offered by SUM:

Not-for-Profit D&O including entity liability cover and employment practices liability. Cover available as one aggregate, or separate limits for D&O and EPLI sections respectively.

Offers cover for charities and charitable organisations, Educational Organisations, Environmental Associations, Governmental Organisations and Agencies, Public Art Organisations, Sports & Leisure Organisations, Strata Plans and Residential Associations, and Trade Associations.

Not covered under Not-for-Profit product: Trade Unions, Medical or Healthcare providers (although we will cover those providing health or medical-related advice).

Management Liability with a modular set of covers including: D&O, Corporate Liability, Employment Practices Liability, Pension Fund/Employee Benefits Fund Trustee Liability, and Employee Fidelity/Crime. Cover available as one aggregate limit or separate limits for D&O and EPLI sections respectively. Fidelity cover is offered as a sublimit of the D&O sections.

Sectors covered include Agriculture and Fishing, Biotechnology, Chemical & Pharmaceutical, Manufacturing, Media, Medical/Healthcare, Mining, Oil & Gas, Professional Services, Retail, Software Development, Internet, Telecomms, Transportation, Utilities, Travel & Leisure.

Sectors not covered: Tobacco, Arms/Weapons/Munitions and related industries.