Directors and Officers Liability Insurance (D&O)

The D&O Policy Provides Cover For The Personal Liability Of Directors And Officers Arising Due To Wrongful Acts In Their Managerial Capacity. Defence 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 is a Directors and Officers liability insurance policy required?

Some of the specific exposures that make D&O insurance necessary for the Directors and Officers are:
  • 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

Key Features

  • Claims made principle: claims must be made during policy period
  • Advancement of Defence costs
  • Right to defend cover
  • Cover for Subsidiaries
  • Outside Directorship coverage
  • Cover for Retired Directors
  • Cover for Regulatory Crisis Response
  • Severability: non-guilty insured is covered
  • Cover for failure / negligence to supervise against any Professional Indemnity related claims
  • Cover for Assets and Liberty Costs including prosecution, bail bond and civil bond expenses
  • Employment Practice Liability (EPL) cover for directors and officers
  • 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
  • Insured vs Insured (defence cost cover)
  • Cover for pollution related claims for defence costs and shareholder claims

Who can bring an action against Directors and Officers?

Employees

Suppliers

Other stakeholders

Regulators

Customers

Competitors

Shareholders

Who does the cover apply to?

The cover applies to former, present and future members of the board of directors, the management and any employee performing a managerial or supervisory role.

D&O Insurance for Small & Medium-Sized Companies

Today's businesses operate in a fast-moving and dynamic environment. Management is closely involved in the day-to-day business operations and important business decisions have to be made on the spot. Such entrepreneurial environment can have a dangerous downside as well. Because the management is so closely involved in daily operations and is often making key decisions, small company owners and managers are extremely vulnerable to lawsuits from regulators, shareholders, customers, competitors, employees and government bodies amongst others. A costly lawsuit of this kind can have a particularly severe impact on individuals since the owner's personal net worth is often tied to the financial health of the company. Keeping this in view, Relitrade Insurance Broking has provides a pre-underwritten Directors and Officers liability insurance policy called Highlight which is designed specifically for the needs of unlisted small and medium sized enterprises.

  • Easy way for small and medium-sized companies to secure protection for their Directors and Officers from such lawsuits and claims.
  • Tata AIG General Insurance Company Limited's extensive resources and state-of-the-art customer service makes managing risk simple and cost-effective.
  • Highlight covers claims made on Directors and Officers of a company by stakeholders including:
  • Shareholders, Regulatory Agencies, Joint Venture Partners, Lenders, Suppliers, Customers, Consultants, Employees, Trade-Unions.
  • The Defence costs involved in the claim are also covered under the policy and are payable in advance of final judgement.

Why do you need Highlight?

The D&O Policy Provides Cover For The Personal Liability Of Directors And Officers Arising Due To Wrongful Acts In Their Managerial Capacity. Defence 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.

Employment Practice litigations
Regulatory investigations
Customer suits
Accounting irregularities
Other stakeholder claims