
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
