Liberty Specialty Markets has introduced a company insolvency extension to its Australian directors’ and officers’ liability policies.

The insurer will pay reasonable costs incurred by a company in engaging an approved adviser under the “safe harbour” insolvency regime.

The regime protects directors from personal liability for insolvent trading when they take action likely to produce a better outcome than immediately appointing an administrator or liquidator. 

“We are proud to be the first and only insurer in the market offering safe harbour advisory cover to our policyholders,” Australian underwriting manager for professional and financial risks Jack Cox said.

Liberty has partnered with leading advisory and restructuring companies to provide insureds with expert guidance, he says.