Directors and Officers Liability Insurance
Leaderim specializes in arranging Directors and Officers Liability Insurance, providing cover for claims made personally against officers in publicly traded companies in Israel or abroad, private companies, hedge funds and venture capital funds as well as in the non-profit sector. We also have specific expertise in advising on indemnity and hold-harmless agreements and the process of obtaining approvals in the relevant organs of the company as required by law. Such a policy protects the directors and officers against claims by third parties holding them personally liable for wrongful acts in the framework of their duties, as well as for investigations by statutory and regulatory authorities as well as in the case of criminal and administrative enforcement proceedings.
Over the last few years there have been an increasing number of claims, including class actions and derivative actions, against Israel companies and their officers, as well as an increase in the severity of court judgements and the costs needed to conduct legal proceedings. We have also seen an increasing trend of investors being encouraged to use claims as a tool for enforcing the duties of the officers and corporate governance principles in certain cases.
All of this has led to a situation whereby D&O insurance has become especially essential. The policy is predominately aimed at officers in public companies who are most highly exposed to such claims, even though the legal climate and market trend is impacting the directors and officers of private companies including start-ups, financial funds, non-profit making organisations and others, who are becoming increasingly exposed to claims.
In the wake of frequent new legislative, including the Israeli Economic Companies Act (formerly referred to as the “Restrictive Trading Practices Act”), the Insolvency and Economic Rehabilitation Act, and a complex legal situation involving schemes of arrangement, corporate restructuring, mergers and acquisitions, directors and officers are frequently faced with dilemmas and new issues relating to the mechanisms for protecting directors and officers, the primary mechanism being D&O insurance.
Major clients and accounts
Arranging insurance in connection with the purchase of Tnuva by the Chinese conglomerate Bright Food.
Advising on insurance aspects of corporate mergers and restructuring in the energy sector in the wake of the Promotion of Competition and Decentralisation Act – 2013.
Arranging insurance for public real-estate companies in the wake of schemes of arrangement.
Handling major claims against directors and officers of financial institutions including SEC claims.
Arranging cover for the Tel Aviv Stock Exchange, Shikun U’binui, Paz Group, Delek Group, Maccabi Health Services and hundreds of other clients.
Your contacts at Leaderim