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DIRECTORS AND OFFICERS LIABILITY

WHY DIRECTORS & OFFICERS MANAGEMENT LIABILITY INSURANCE?

The reason For Directors and Officers Liability Insurance is “The expansion of global footprints of Indian companies, Stringent and Complex Regulatory Environment, increased shareholder litigation”.This has made the job of Directors and officers of company more challenging. It is a fact that virtually everything they do creates the potential for second-guessing and perhaps claims by persons adversely affected by their actions and decisions.

As per the Newly introduced Company Act 2013, the Director duties are defined as

  • A director of a company shall act in accordance with the Articles of Association (AOA) of the company.
  • A director of the company shall act in good faith, in order to promote the objects of the company, for the benefits of the company as a whole, and in the best interests of the stakeholders of the company.
  • A director of a company shall exercise his duties with due and reasonable care, skill and diligence and shall exercise independent judgment.
  • A director of a company shall not involve in a situation in which he may have a direct or indirect interest that conflicts, or possibly may conflict, with the interest of the company.
  • A director of a company shall not achieve or attempt to achieve any undue gain or advantage either to himself or to his relatives, partners, or associates and if such director is found guilty of making any undue gain, he shall be liable to pay an amount equal to that gain to the company.
  • A director of a company shall not assign his office and any assignment so made shall be void.
Directors and Officers Liability
Directors and Officers Liability Insurance

Also to note, the definition of “Officer who is in default” is widened to include Key Managerial Personnel.

D&O Liability Insurance can help protect directors and officers against the financial burden of litigation, damage to their reputation and loss of personal assets.

Cover for legal costs and expenses is important as litigation involving company directors and officers is often complex and expensive. It is imperative that they have access to specialized and quality legal representation to safeguard their interests in the most effective way.

Directors & Officers (D&O) Management Liability Insurance is the solution that provides company directors and officers with the confidence to deal with the challenges of business. Should they be faced with civil litigation or criminal prosecution, they can be rest assured that Insurer can afford them assistance and protection

WHO MAY CLAIM AGAINST DIRECTORS & OFFICERS?
WHAT IS COVERED?
WHAT IS NOT COVERED?
WHAT IS ADDITIONALLY COVERED?
WHAT CAN BE COVERED ON PAYMENT OF ADDITIONAL PREMIUM?
Directors and Officers Liability Insurance Policy

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