Directors' & Officers' Liability Insurance

Why should you buy Directors’ & Officers’ Liability Insurance? Did you know even a frivolous suit against you could cost you a bomb? Would you pay out of your pocket if you were dragged to the court for an allegation in your capacity as the director of a company?

Be it private or public, zero possibility of having no D&O claims is almost nonexistent in today’s time. Gaining an understanding of your business/ company, we not only provide you in-depth knowledge of the risks that could potentially arise but also guide you on how you can have them all covered!

Who is covered?

Parent company and existing subsidiary companies
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Former, present and future directors
.
Outside directors, nominee directors

Some examples of wrongful acts that could result in legal liability:

Mergers and acquisitions
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Misleading statements filed with stock exchanges
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Unfair dismissal of an employee
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Unwarranted dividend, salary, compensation payments
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Mismanagement of funds
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Unfair allotment of shares
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Any act leading to conflict of interest
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Lack of judgment, diligence, good faith
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Errors in actual accounts
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Inaccurate statement of financial condition

Who can potentially sue the directors and officers?

Shareholders
.
Consumers
.
Competitors
.
Creditors
.
Public/ regulatory authorities
.
Employees

What is covered?

The policy pays on behalf of the company any amount, which it is required to pay on behalf of the Directors and Officers in respect of legal actions alleging wrongful acts committed by them, including:

Legal costs in defending allegations or suits brought against Directors alleging wrongful act.
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Bail bonds
.
Official investigations costs

What is not covered?

Dishonest/fraudulent act
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Libel, slander, defamation
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Hostile takeover
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Professional liability
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Bodily injury/property damage
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Fines, penalties, punitive damages
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Criminal behavior
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Loss from trading of securities of the insured corporate by Ds & Os
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Improper gain
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Willful infringement of law
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Failure to affect or maintain insurance
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Pension plans, employees benefit plans
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Environment damage/ pollution
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Nuclear perils and war
.
Loss covered by other insurance
.
Known losses/claims/wrongful acts before the commencement of policy