While incorporation provides some protection to directors and committee members, it does not protect individuals from being sued for acts of negligence. A director or officer who negligently gives wrong advice, asks someone to perform a dangerous task or dismisses staff without proper authority or process exposes themselves, and their organisation to being used.

Where such cases can be proven, the personal assets of negligent director or committee members can be seized to meet any damages. This is why you as Directors and Officers should be covered by Directors and Officers Liability Insurance.

Generally under such policies the organisation itself is not covered for the wrongful acts. This would generally be covered through the public liability insurance.