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
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