Directors & Officers Liability Insurance 



What is Directors & Officers Insurance?


 Directors and officers (D&O) insurance is liability insurance which covers or protects Directors, Officers and Employees of company from claims which may arise from decision and actions taken while serving their duty. It covers legal defense costs or other costs incurred by company in defending such individual against lawsuits.

Directors & Officers can be sued or alleged for wrongful acts related to:

  • Breach of duty, breach of trust, misstatement or misleading statement, defamation, libel or slander, act of omission or negligence.
  • Employment process or inappropriate workplace conduct such as discrimination, retaliation, defamation, failure to promote, sexual harassment etc.
  • Claim solely because of their status.


Why do you need Directors & Officers Insurance?


Directors and officers are legally responsible and bound by duty towards various stakeholders like shareholders, employees, creditors, customers, competitors and government or regulatory bodies.

Any breach or non-performance in the duties can result in claims against directors, officers and employees by reason of wrongful act and need to incur various expenses like defense costs, damages or compensation and other incidental costs. This can affect company’s growth and performance.

This policy will protect against such expenses, losses and claims.

What is covered & not-covered by Directors & Officers Insurance?


Inclusions 

·         Covers Directors and officers for claims where the company refuses to or is financially unable to pay for loss and the Directors and officers have to protect themselves, against demands, legal suits, allegations

·         Covers company under Employment practice liability (EPL) from wrongful acts arising out of allegations and legal suits related to employment process or inappropriate workplace conduct such as sexual harassment, gender or caste discrimination, retaliation, defamation, failure to promote, etc.

·         Impact damage of any kind, i.e. damage caused by impact of, Covers costs incurred by the insured company in defending such individual against losses, falling trees, aircraft, wall etc.)

Exclusions 

·         Claims arising out of Bodily injury and property damage

·         Policy will not cover Salaries, wages, personal expenses, benefits or overhead expenses of an Insured Person.

·         Claim arising out of Public/private offering of securities.

·         Claims arising out of Crime, Fraud and Personal Conduct

·         Claim made by Major shareholders against other insured persons