Specialty Insurance

Directors & Officers Liability Insurance Policy

Being a director or an officer of a company is a high risk profession. If held personally liable for their own and fellow Directors' decisions, one could face serious financial loss through litigation from shareholders, creditors, competitors, suppliers, regulatory bodies, etc.

HDFC ERGO's Directors' and Officers' Liability policy is affordable and offers you security and protection. The policy can advance defence costs as they are incurred and provides some of the broadest coverage available on the "form of choice" of the industry.

These are automatically included with every Classic D&O Liability policy:

  • Management Liability
  • Management indemnification
  • Non-Profit outside Directorship Liability
  • Estates and legal representatives of incapacitated or beceased insured individuals covered
  • Spousal Liability extension
  • Cover for the creation or acquisition of new Subsidiary companies (effective from the date of acquisition or creation)
  • Directors
  • Officers
  • Company secretaries
  • Other persons employed in an executive capacity

Broad definition of wrongful acts

  • Get cover against errors, misstatements, misleading statements, acts, omissions, neglect, and breach of duty/breach of trust on part of insured individuals. And any matter claimed against insured individuals solely by reason of their serving as an insured individual.
  • Broad outside Directorship Liability cover Get worldwide cover, including USA
  • Standard wordingbroad definition of wrongful acts
  • The definition of claim covers
    • Written demands for monetary damages
    • Civil law suits or criminal proceedings
    • Formal investigations by regulatory bodies
  • Your choice Insured's have the right to choose their own legal counsel Subject to HDFC ERGO's prior approval.
  • Defence costs provided within the limit of Liability and in advance of the final disposition of a claim.
  • Legal representation costs covered if a director or officer is legally compelled to appear at an official investigation into the affairs of such director or officer or the company.
  • Severability of all exclusions and the proposal form for insured individuals such that no fact pertaining to or knowledge possessed by any insured individual shall be imputed to another to determine available cover.
  • Definition of loss covers Judgements, settlements and defence costs.
  • Cover is available for externally appointed liquidators or receivers bringing an action against insured individuals.
  • Cover is available for past Directors or officers bringing an action against current Directors or officers.
  • Defence costs cover for Insured vs. Insured actions outside USA.
  • Punitive damages cover provided to the extent insuradle at law.
  • Pending or prior litigation, demands or judgements.
  • Circumstances notified under a prior insurance policy.
  • Claims brought by one insured individual or the insured organisation against another insured individual other than:
    • Derivative actions brought by shareholders or regulatory bodies
    • Employee related actions of wrongful termination, denial of natural justice and befamation relating to wrongful termination, discrimination or sexual harassment claims
    • Claims by an insured individual for contribution or indemnity
    • defence costs incurred outside and not Subject to the procedural laws of the USA
  • Claims against the fiduciaries or administrators of any retirement or employee benefit plan.
  • Bodily injury or property damage claims.
  • Pollution claims other than for shareholder derivative actions.
  • Deliberately criminal or fraudulent act or omission or willful violation of statute or regulation where established at final adjudication.
  • Breaches of insider trading legislation.
  • Illegal personal profits, remuneration or advantage where established in fact.
  • USA securities offerings.
  • Fines, penalties or multiple damages.