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?





Public/ regulatory authorities


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