Directors & Officers Liability insurance
A Directors and Officers liability policy is a cover for the personal liability arising due to claims brought against Directors, Officers and Employees for actual or alleged misstatements, neglect, errors or breach of duty in their managerial capacity.
Directors & Officers, being human, may commit an unintentional errors or omissions during their course of work/decision making and thus bring about a situation where your company or they in their capacity as Directors/Officers are sued.
Directors & Officers Liability Insurance is also called a D&O policy or a D&O liability insurance.
Some of the specific exposures that make D&O insurance necessary for the Directors and Officers are:
Today's small businesses & start-ups operate in a fast-moving and dynamic environment. In smaller firms and start-ups, management is closely involved in the day-to-day business operations and important business decisions must be made on the spot.
Such involvement can have a dangerous downside as well; being so closely involved in daily operations and is often making key decisions, makes small company owners and managers 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.
A D&O policy applies to members of the board of directors, the management and employee performing a supervisory or managerial role in a company. D&O liability insures them against personal liability and defense costs incurred from claims alleging wrongful acts in the line of their duties for the company.
The defense costs are also covered under a Directors and Officers Liability Insurance policy and are payable in advance of the final judgment.
A Directors & Officers Liability Policy can be extended to include the following by paying an extra premium based on risk exposure. If you have requests for additional extensions or a tailor-made benefit, Perilwise will find one for you.
This extension to a D&O policy will cover the costs incurred in preparing for and appearing for an Inquiry, which may be an official investigation, administrative or regulatory proceeding or examination into the affairs of the Company.
These costs will however, not include salaries, travel, wages and accommodation expenses of the insured person.
This extends the Policy’s coverage to the lawful spouse, executors, heirs, administrators or legal representatives of the insured; only in case of a claim made from a wrongful act of the insured individual.
This extension allows the insured to remain covered even as he is acting in capacity of a director or officer of an Outside Entity, provided it is at the specific request (with a written approval) of the company.
The policy, under this extension, can cover the former directors & officers of a company.
This extension will cover the defense costs, which you may incur defending a claim correlated to the actual or alleged dispersal, discharge, escape or release of any pollutants.
This extension will cover the loss experienced due to payable legal liabilities that occur because of a claim made, either directly or indirectly, by any shareholder of the company.
The “claim” in this case being an allegation of loss due to any actual or alleged dispersal, discharge, escape or release of any pollutants.
This covers any company which might have become a subsidiary during the Policy tenure, subject to certain terms and conditions mentioned in detail under the Policy wordings.
The insured, under this policy extension, can request for a policy period extension in case a change in control occurs during the initial tenure of the policy.
Most cover extensions have a sub-limit which forms a part of the Limit of Indemnity. Plus, this list states only a few major extensions; your perilwise representative will aid you in choosing the correct list of policy extensions
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