Directors & Officers Liability Insurance
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.
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
Misstatement or Misleading Statement.