Directors’ and Officers’ Liability

Directors' and Officers' Liability Overview

QGIF covers Agencies for any third party claims arising from the decisions and actions of its Board and/or Committee members in the performance of their duties which results in adverse financial consequences but only where indemnity has been granted by the Agency.

Indemnity may be granted under enabling legislation, contractual agreement or in accordance with the Queensland Government Indemnity Guidelines.  The cover provided by QGIF, under the umbrella of its General Liability section, is on the basis of Agency reimbursement only and is equivalent to what is known in the commercial market as Side B – Directors’ and Officers’ Company Reimbursement Cover.

As QGIF cannot insure non-government entities, QGIF is unable to cover claims made personally against individual Board and/or Committee members and for which the Agency cannot provide immunity, for example, where it is alleged a crime has been committed.

Who’s Covered?

  • All Queensland Government Agencies insured with QGIF
  • The Agency’s Board and Committee members where:
    • an Agency agrees to indemnify an Agency’s Board and/or Committee member under the Queensland Government Indemnity Guidelines (as amended from time to time).  The indemnity process is not determined by QGIF.  The Agency’s Board members and Committee members, who have been granted indemnity, will be covered under the QGIF policy. More information on Board indemnification can be found on the Department of Premier and Cabinet’s website.
    • A civil liability in relation to the conduct of an Agency’s Board member or Committee member attaches to the Agency pursuant to a Queensland law (e.g. section 26C of the Public Service Act 2008 (Qld).

What’s covered?

  • losses where the Agency has agreed to indemnify the Board or Committee member and there is a claim for compensation for financial loss as a result of a decision or action of the Board or Committee.

What’s excluded?

  • claims against the Board or Committee member where the Agency is not able to grant an indemnity or for losses that are not associated with an insurable event, for example, a criminal action.
  • legal liability for which the Agency has assumed under a contract or agreement, unless liability would have existed in the absence of such a contract or agreement.
  • costs associated with a Board or Committee member’s attendance at an official inquiry or investigation.
  • legal defence costs including any damages or pecuniary penalties awarded.
  • claims covered by other insurance or contractual agreements.

Frequently Asked Questions

A third party submits a claim for financial loss, alleging it was due to a Board decision of the Agency.

Board members, Directors and Committee members should seek their own advice on the full extent of the Queensland Government’s indemnification policy and whether they wish to obtain separate commercial insurance for losses not covered by QGIF.