Why is a Directors and Officers liability insurance policy required?
Some of the specific exposures that make D&O insurance necessary for the Directors and Officers are:
• Vulnerability to shareholder/stakeholder claims
• Sexual harassment, discrimination allegations and other employment practice violations
• Regulatory investigations
• Accounting irregularities
• Exposures relating to mergers and acquisitions
• Corporate Governance requirements
• Compliance with various legal statutes
Who can bring an action against Directors and Officers?
• Employees
• Suppliers
• Competitors
• Regulators
• Customers
• Shareholders
• Other stakeholders
Who does the cover apply to?
The cover applies to former, present and future members of the board of directors, the management and any employee performing a managerial or supervisory role.
What does the Directors and Officers liability insurance policy cover?
The D&O policy provides cover for the personal liability of Directors and Officers arising due to wrongful acts in their managerial capacity. Defence costs are also covered and are payable in advance of final judgment.
AIG - Pioneers in D&O liability insurance
Having pioneered the Directors and Officers liability insurance, AIG is the most preferred underwriter of D&O Insurance among the Fortune 500 companies in the United States. AIG´s inherent strengths available to the Indian industry through the Tata AIG partnership include:
• Superior claims handling ability
• Presence in more than 130 jurisdictions
• Local expertise, understanding and support with global backing
Note:
For complete details on policy coverage and interpretation, please refer to the policy wording.
