Past, present, and future Directors and Officers/Key Managerial Personnel (KMP) of profit and non-profit companies are protected against damages stemming from alleged or actual inadvertent wrongful acts they may have undertaken in their managerial role. It protects the Directors & Officers of your company from any claims that may emerge as a result of their decisions and conduct while on duty. It covers the costs of legal defense and other expenses spent by the corporation in defending such a person against lawsuits.
Shareholders, employees, creditors, consumers, competitors, and government or regulatory agencies are among the stakeholders for which directors and officers are legally responsible and bound by obligation.
Any breach or non-performance of responsibilities can result in wrongful act lawsuits against directors, officers, and employees, necessitating the payment of defence fees, damages or compensation, and other incidental charges. This may have an impact on the company’s growth and performance.
Directors & Officers can be sued for wrongful acts like: –
Defamation, libel or slander, act of omission or negligence, violation of duty, breach of trust, misrepresentation or misleading statement, defamation.
Discrimination, retaliation, slander, refusal to promote, sexual harassment, and other forms of inappropriate workplace behaviour
Claims exclusively on the basis of their position.
The policy will your company from such losses, expenses or claims.
The incidents described below may result in legal action being taken against Directors and Officers.
Unprecedented irregularities in securities transactions
Breach of fiduciary responsibility to minority shareholders
Integrity difficulties in management
Harassment or irregularities in the workplace
Practices in Auditing and Accounting
Mergers & Acquisitions
Requirements for corporate governance
Observance of certain legal provisions
Listing of stock or debt on a stock exchange ?
Well, we have got that sorted for you!!
The policy includes the following: –
Covers directors and officers in the event that the firm refuses or is unable to pay for a loss, and the directors and officers must defend themselves against demands, legal cases, and allegations.
Protects your company from complaints and legal suits relating to the hiring process or inappropriate workplace behaviour, such as sexual harassment, gender or caste discrimination, retaliation, defamation, refusal to promote, and so on.
Covers the costs incurred by your company in defending a person against any type of impact damage, i.e., damage produced by the impact of falling trees, aircrafts, walls collapsing, and so on.
The policy will not cover the following: –
Compensation claims for bodily injury and property damage
Salaries, personal expenses, benefits and overhead expenses of an insured person are not covered by the policy.
Claim stemming from a public/private securities offering.
Claims originating from criminal activity, fraud, and bad behaviour
Major stockholders have filed a claim against other covered people.
Directors and Officers are the face of any organization and any bad things against them will tarnish the credibility of your company and hence it is imperative for any company to have Directors & Officers Liability Insurance Policy in order to protect the top employees of your company from being tarnished and hence protect the goodwill of your company.
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