Directors and officers insurance: the “Professional Services” exclusion

Directors and officers policies typically draw a distinction between liabilities incurred by directors in their capacity as directors, and liabilities incurred by directors in some other capacity. The latter are excluded, and are typically insured under separate professional indemnity cover. The demarcation line was considered by Rebecca Ellis J in the High Court of New Zealand in Trustees Executors Ltd v Fund Managers Canterbury Ltd [2016] NZHC 2194.

The contractual arrangements