Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company.
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.
Directors and officers are sued for a variety of reasons related to their company roles, including:
Illegal acts or illegal profits are generally not covered under D&O insurance.
The cover applies to former, present and future board of Directors and the Management including employee's . Cover will apply to above individuals of parent company , the subsidiary companies ( depending on the definition ) and subsidiary companies acquired or incorporated during the policy period. (It should be noted that outside directors, public representative or shadow directors might also required the cover)
Key Coverage's under this policy