Directors’ & Officers’ Liability

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? While the directors work day in, day out to improve the value of the shares of a shareholder (earning them big bucks), doesn’t the shareholder have an obligation to at least protect its directors and officers from potential liabilities that could arise? God forbid, if your company goes bankrupt, are you prepared to pay the creditors who could sue you?

Be it private or public, zero possibility of having no D&O claims is almost non-existent 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 can potentially sue
the directors and officers?

Shareholders

Consumers

Competitors

Creditors

Public/ regulatory authorities

Employees



Who is covered?

Former, present and future directors

Parent company and existing subsidiary companies

Outside directors, nominee directors

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

Mergers and acquisitions


Misleading statements filed with stock exchanges


Unfair dismissal of an employee


Unwarranted dividend, salary, compensation payments


Misusing confidential company information


Mismanagement of funds

Unfair allotment of shares


Any act leading to conflict of interest


Lack of judgment, diligence, good faith


Errors in actual accounts


Inaccurate statement of financial condition

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.


Bail bonds


Official investigation costs

What is not covered?

Dishonest/fraudulent act


Criminal behavior


Professional liability


Willful infringement of law


Libel, slander, defamation


Loss from trading of securities of the insured corporate by Ds & Os


Bodily injury/property damage


Failure to affect or maintain insurance


Hostile takeover

Improper gain


Fines, penalties, punitive damages


Pension plans, employees benefit plans


Environment damage/pollution


Loss covered by other insurance


Nuclear perils and war


Known losses/claims/wrongful acts before the commencement of policy