Director’s & Officer’s Liability Insurance

This insurance essentially protects corporate directors and officers (D&Os) against legal claims arising from their actions or omissions in their role, as certain provisions of the Companies Act, 2013, and subsequent amendments imply its necessity. Additionally, this insurance can extend coverage to the company itself, safeguarding it against specific claims.

Coverage

D&O insurance typically covers claims for:


  • Breach of fiduciary duty
  • Negligence
  • Wrongful acts
  • Securities fraud
  • Employment practices liability
  • Regulatory violations

Costing

  • D&O insurance policies offer varying coverages depending on the insurer and policy, typically including defense costs and financial losses resulting from lawsuits
  • The cost of D&O insurance depends on factors such as organisation size, industry, the risk profile of directors and officers, and desired coverage

Benefits

  • Safeguards directors and officers from personal financial losses arising from lawsuits
  • Enables directors and officers to concentrate on their responsibilities without concerns about personal liability
  • Shields organisations from financial losses that may arise from lawsuits against directors and officers

Points to consider

Here are some factors that you’ll need to consider while choosing a D&O insurance policy:


  • The specific coverages that you need
  • The level of limits that you need
  • The cost of the policy
  • The reputation of the insurer

Claim Process

1

Notification

2

Assignment of claim handler

3

Investigation

4

Coverage determination

5

Claim settlement/negotiation

6

Claim resolution

7

Thank You

Note: The claims process can vary depending on the specific circumstances and the policies.

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