The directors and officers of any corporate shoulder many responsibilities relating to the conduct of business. Any slip can result in a suit and fastening of personal financial liability. Even in a case where the suit is groundless, the expenses of defending it can be enormous. The risk is multiplied if the suit has arisen in a foreign country. Directors and Officers Liability Insurance Policy protects the management against the financial liabilities arising from the activities connected with the business operations.
Features of this policy
- Policy on ‘claims made’ basis.
- Liabilities arising out of directorship in subsidiary companies covered.
- Outside directorship can also be covered.
- Coverage possible for liabilities emanating from any where in the world.
- Coverage for financial award as well as legal costs.
What liability does this policy not cover
- Prior and pending claims at the commencement of policy
- Dishonest and fraudulent acts.
- Pollution liability.
- Bodily injury.
- Property damage.
- Insured Vs insured i.e. suits from company, fellow directors etc.
- Illegal personal profit and remuneration.
- Insider trading.