Private Edge

An innovative product to protect the personal assets of individuals and cover the costs of their defence.

Directors of all companies are now held, at an unprecedented level, to be personally responsible for any actions and decisions they make on behalf of the company – putting their personal assets at risk if those decisions are tested in the courts. 

Legally, the directors of a company and the company itself are separate entities – so they can both be defendants, separately or jointly, in any legal action or prosecution. To protect the personal assets of individuals and cover the costs of their defence, Directors & Officers Insurance is widely used – however, the company is excluded from this cover, leaving it to fund is own defence and liable for any awards or costs made against it, eating into its reserves or even bringing into question its future viability. 

This effectively means that directors of private companies, whilst seeking protection against loss of their personal assets by a D&O policy, can still lose a great proportion of those assets, the value of their holding in the company, if the company should be sued or prosecuted. 

PrivateEdge recognises this problem and provides unique mechanisms to allow the company itself to be brought under the protection of the policy.

Features and Benefits

  • Outside directorship cover.
  • Automatic cover for new subsidiaries.
  • Joint property liability.
  • Advancement of defence costs.
  • Defamation.
  • North American exposure.
  • Optional discovery periods actionable by policyholder.
  • Full severability of proposal form and innocent non-disclosure clause.

Who is it for?

Private companies, partnerships and not for profit entities.

What is covered?

The management liability exposures of the company and individual directors, officers and employees, including:

  • Insuring Clause 1 Labour Practice Liability.
  • Insuring Clause 2 Trustee Liability.
  • Insuring Clause 3 Company Management Liability (Company).
  • Insuring Clause 4 Personal Management Liability (Director).
  • Insuring Clause Crisis Containment.
  • Investigation costs (but limited to discrimination and Health & Safety investigation costs for the company).

PrivateEdge policies are short-term products and are underwritten by AIG South Africa Limited, FSP No: 15805