Directors and officers liability Insurance is liability insurance payable to the directors and officers of a company, as indemnification for losses or advancement of defence costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers.
This Insurance Policy protects directors‘ and officers’ personal assets. It covers damages and expenses assessed against a director or officer who has not been indemnified because the corporation is bankrupt or is barred by law from providing reimbursement.
Introduction
Directors and officers of an Organization hold a position of trust are responsible towards the company, the shareholders, the employees, and the public at large.
They may become liable to pay damages in below mentioned scenarios:
- Misstatement in prospectus
- Inaccurate statement of financial conditions
- Errors in annual accounts
- Conflict of interest
- Lack of judgment, diligence, good faith
- Mismanagement of funds
- Unfair allotment of shares
- Using insider information
- Unwarranted dividend, salary, compensation payments
- Unfair dismissal of an employee
Our Directors and Officers Liability policy protects the personal fortunes of individual directors and officers, in respect of
personal liabilities arising out of their wrongful acts like:
- Breach of Duty
- Breach of Trust
- Neglect
- Error
- Misstatement or Misleading Statement.