About Directors & Officers Liability Insurance
Board members and senior executives can be held personally liable for mistakes made and actions taken while managing an organization. Directors’ personal liability for the performance of company is unlimited. As lawsuits become increasingly costly and expenses continue to escalate, companies recognize the need to acquire Directors and Officers (D&O) liability insurance.
What is Directors & Officer liability Insurance:
Directors & Officers (D&O) Insurance protects corporate directors and senior executives from lawsuits which may arise from the decisions and actions taken within the scope of their regular duties. The aim of the policy is to fund a legal battle and to safeguard personal liability against the consequences of actual or alleged wrongful acts. The policy is usually bought from the company to protect their decision makers so they can serve confidently as leaders, without fear of personal financial loss.
What does D&O policy usually covers:
• Legal expenses, awards, settlements, judgements, and other related costs: the policy usually covers the costs of legal defence including investigation and damages in the event of a lawsuit or legal action against directors and officers
• Outside entity directorship: Outside entity directorship cover is particularly relevant for directors and officers who serve on boards of non-profits, privately held companies (non-financial institutions) , startups, or other entities with limited resources or legal structures that prevent them from providing adequate indemnification.
• Entity coverage for security claims: some types of D&O policies provide entity coverage, which extends the coverage to the company itself for certain types of claims, such as securities claims or shareholder derivative
• Entity coverage for employment practices liability claims: certain D&O policies provide entity coverage, which extends the coverage to the company itself for claims related to employment practices, such as wrongful termination, discrimination, harassment, or retaliation
Directors & Officers (D&O) Insurance protects corporate directors and senior executives from lawsuits which may arise from the decisions and actions taken within the scope of their regular duties. The aim of the policy is to fund a legal battle and to safeguard personal liability against the consequences of actual or alleged wrongful acts. The policy is usually bought from the company to protect their decision makers so they can serve confidently as leaders, without fear of personal financial loss.
What does D&O policy usually covers:
• Legal expenses, awards, settlements, judgements, and other related costs: the policy usually covers the costs of legal defence including investigation and damages in the event of a lawsuit or legal action against directors and officers
• Outside entity directorship: Outside entity directorship cover is particularly relevant for directors and officers who serve on boards of non-profits, privately held companies (non-financial institutions) , startups, or other entities with limited resources or legal structures that prevent them from providing adequate indemnification.
• Entity coverage for security claims: some types of D&O policies provide entity coverage, which extends the coverage to the company itself for certain types of claims, such as securities claims or shareholder derivative
• Entity coverage for employment practices liability claims: certain D&O policies provide entity coverage, which extends the coverage to the company itself for claims related to employment practices, such as wrongful termination, discrimination, harassment, or retaliation
Who’s cover under a D&O policy:
• All current, future, and past directors and officers of a company and its subsidiaries
• Directors: any natural person who is serving on the board of directors of an insured entity. This includes both the executives and non-executive directors
• Officers: the policy covers individuals that hold senior executive positions or key employees who have decision-making authority or fiduciary responsibilities
• Spouse or domestic partner of a director or officer
• The company
Common D&O risk scenarios:
• Mismanagement & Breach of fiduciary duty
• Failure to comply with the law or legislation
• Reporting errors
• Misuse of company funds
• Inaccurate or inefficient disclosures
• Employment and HR issues
• Lack of corporate governance
• M&A suits
• Bankruptcy suits
Who can claim under a D&O policy:
• Regulatory bodies, regulatory authorities
• Shareholders
• Investors, creditors, banks
• The company itself, and employees
• Customers, suppliers, and competitors
Who we help:
• Financial Institutions
• Publicly Traded companies
• Private companies
• Corporate service providers
• Startups and high-growth companies
• Non-profit organizations
• All current, future, and past directors and officers of a company and its subsidiaries
• Directors: any natural person who is serving on the board of directors of an insured entity. This includes both the executives and non-executive directors
• Officers: the policy covers individuals that hold senior executive positions or key employees who have decision-making authority or fiduciary responsibilities
• Spouse or domestic partner of a director or officer
• The company
Common D&O risk scenarios:
• Mismanagement & Breach of fiduciary duty
• Failure to comply with the law or legislation
• Reporting errors
• Misuse of company funds
• Inaccurate or inefficient disclosures
• Employment and HR issues
• Lack of corporate governance
• M&A suits
• Bankruptcy suits
Who can claim under a D&O policy:
• Regulatory bodies, regulatory authorities
• Shareholders
• Investors, creditors, banks
• The company itself, and employees
• Customers, suppliers, and competitors
Who we help:
• Financial Institutions
• Publicly Traded companies
• Private companies
• Corporate service providers
• Startups and high-growth companies
• Non-profit organizations
