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.