Duties Of Directors :
The D&O Policy Provides Cover For The Personal Liability Of Directors And Officers Arising Due To Wrongful Acts In Their Managerial Capacity. Defense Costs Are Also Covered And Are Payable In Advance Of Final Judgment. This Policy Provides Protection For Claims Brought Against Directors, Officers And Employees For Actual Or Alleged Breach Of Duty, Neglect, Misstatements Or Errors In Their Managerial Capacity.
Why It is Required:
- Vulnerability to shareholder/stakeholder claims
- Sexual harassment, discrimination allegations and other employment practice violations
- Regulatory investigations
- Accounting irregularities
- Exposures relating to mergers and acquisitions
- Corporate Governance requirements
- Compliance with various legal statutes
Important Covers under D&O Policy
- Advancement of Defense costs
- Claims made principle: claims must be made during policy period
- Right to defend cover
- Cover for Subsidiaries
- Outside Directorship coverage
- Cover for Retired Directors
- Employment Practice Liability (EPL) cover for directors and officers
- Cover for failure / negligence to supervise against any Professional Indemnity related claims
- Cover for Regulatory Crisis Response
- Cover for Assets and Liberty Costs including prosecution, bail bond and civil bond expenses
- Cover for damage to reputation
- Cover for Heirs, Estates and Legal Representatives
- Bilateral Discovery Period
- Emergency Costs cover
- Kidnap response cover
- Special excess protection for non executive directors
- Cover for pollution related claims for defense costs and shareholder claims
- Insured vs Insured (defense cost cover)
- Severability: non-guilty insured is covered
Parties Who Can Bring Action against Directors & Officers:
- Employees
- Suppliers
- Competitors
- Regulators
- Customers
- Shareholders
- Other stakeholders
What is Not Covered :
- Prior Claims and Circumstances.
- Deliberate dishonest or fraudulent act
- BIPD claims with carve back for defense cost