deed of indemnity - featured image" width="1024" height="680" />deed of indemnity - featured image" width="1024" height="680" />
Holding a role in a company as its director comes with a lot of responsibilities and risks. This is why you must know how to protect yourself with the help of a deed of indemnity, especially if the company is owned by more than one person.
This article will teach you how to create a deed of indemnity and the many ways it can help you.
Table of Contents
deed of indemnity - image 1" width="1024" height="680" />When you’re drafting a deed of indemnity, it’s important that you include these essential elements:
The deed should have a clear definition for every key term used. This includes the liability, claim, and company.
As for the coverage, you should choose a deed that can provide unlimited coverage. This means that you will continue to be protected even if you are no longer a director in the company.
This section in the document should outline the extent wherein you will be covered by the company as its director. Standard indemnity clauses usually indemnified directors to “the maximum extent permitted by law.” What this means is that there are circumstances wherein clauses will exclude indemnity, such as criminal, dishonest, and fraudulent behavior.
If you are writing a deed, be clear on how you wish to be covered by the company. Include information on legal costs and who will be paying these.
It’s also important that you include document access in your deed of indemnity. This ensures that you will continue to have access to important company documents, especially if you need them for any court proceedings.
Directors and officers have a separate insurance from the company. The deed will make sure that the D&O insurance will maintained and paid for by the company.
You can also get protection if the company you work for is part of a larger group. The parent company may be able to guarantee your indemnity and help protect you if you face risks or penalties as the director.
Below is a preview of Deed of Indemnity Form. Use this form for free when you sign up for a Fill account.
