Why the need for Directors and Officers Liability Insurance?
There are many duties that are associated to being a director or officer of the company. The common law requires directors to carry out their duties with care and skill. Directors and officers are considered fiduciaries of public or private companies and thus are responsible for managing the affairs of their organizations. Furthermore, there are also statutory duties imposed upon the directors.
A breach of any of these duties may result in them facing lawsuit brought by the company, its shareholders or in those doing business with the company or worse criminal and regulatory investigations including imprisonment and fines.
Under the Company Act, Section 140 (1) prohibits indemnification of a director or officer by a company in respect of negligence, default, breach of duty or breach of trust of which he may be guilty in relation to the company.
As such, the best protection is to insure against these potential liabilities.
What is the insurance coverage?
Directors and Officers Insurance provides financial protection to the individual directors and officers of a company for actual or alleged wrongful acts.
It protects these individuals from personal liability in the event of a claim or lawsuit against them claiming wrongdoing in connection with the company’s business. Such coverage also provides for the defense costs, investigating, monitoring of any claim or proceedings and appeals incurred with the written consent of the insurer.
Who sues Directors or Officers?
- Regulators, Authorities
What to do in the event of a claim?
The insured shall give notice in writing to the insurance company immediately of any claim made against the Insured or the discovery by the Insured of any loss, or any circumstances of which the Insured becomes aware which are likely to give rise to such a claim or loss.
The insured shall not admit liability for or settle any claim or incur any costs or expenses in connection therewith without consent of the insurer.
How to obtain a quotation?
Clients should complete the Directors and Officers Liability proposal form in order to provide information relating to scope of services, annual fee income, claim history, etc for underwriting purposes.
If you have already completed your renewal form send it to us by fax 03-91332661 or email to firstname.lastname@example.org
Or Call Patrick Low, our insurance professional who specializes in Directors and Officers Liability Insurance, on 012-3737555 to see what we can do for you.
Other product offered: Professional Indemnity Insurance