Directors and Officers Liability Insurance
- The policy being “Claims Made Basis” allows for indemnification of the claims made during the policy period and can also cover the prior acts retroactively.
- The policy covers all the Directors & Officers of the Company & its subsidiaries and is not on named/numbered basis. Even the Associate Companies can also be added. Past, present and future directors and officers are covered.
- Directors are easily identifiable. Officers refer to employees occupying a management or supervisory capacity.
- Cover also provided for administrative or regulatory proceeding or official investigation
- Aimed at protecting directors and officers of the company. It is therefore a cover to protect individual corporate managers
- The policy does not cover the company for its liability (though there are extensions available that will protect the company in certain areas).
Major Exclusions
- Bodily Injury, Sickness, Disease, Death, or Damage / Destruction of Property.
- Seepage & Pollution or Contamination.
- Liability of a Director or Officer to restore or account for Remuneration paid to him for which he is not legally entitled.
- War and Civil War Exclusion
- Radioactive Contamination Exclusion
- Terrorism Exclusion
- Prior and Pending Litigation Exclusion at Inception
- Major Shareholder Suits Exclusion at 15-20%
- Absolute BI / PD and Professional Indemnity
- Future Securities Offering Exclusion
- Exclusion due to underwriting considerations - Insurers may in addition to the standard exclusions, endorse the Policy with additional exclusion because of the nature of the case. For example, the company may be facing litigation; therefore the Policy will exclude any claim or development arising from the claim.
Note : For detailed converge please refer policy wordings
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