indemnity insurance

I have had a loo at our website and came across the following in the Corporate Governance section.


Non-executive remuneration

Shareholders approve the maximum aggregate remuneration for non-executive directors. The Board recommends the actual payments to directors. The maximum aggregate remuneration approved for non-executive directors is currently $150,000.

All directors are entitled to have their indemnity insurance paid by the Company.


From memory the insurance premium was circa $25k. If we have paid an insurance premium to indemnify the directors why are we also now paying their legal bills? Wouldn't this be covered by their insurance policy?