Get A Quote


August 29, 2018

Directors & Officers (D & O) Liability Insurance

Directors & Officers Liability Insurance

Directors & Officers Liability Insurance Managing a business enterprise has never been so challenging.

Directors & Officers Liability Insurance

Managing a business enterprise has never been so challenging. The growing competitive landscape, the fear of failures & the stricter local and global regulations have kept the boards short of “throwing caution to the winds”. But, business being business, their managers do need the freedom to take decisions and engulf risks in the process. Business directors and senior officials.

D & O (Director’s & Officer’s) Liability Insurance Policy

D & O (Director’s & Officer’s) Liability Insurance Policy offers cover to the managers and indemnifies them for insured financial liabilities incurred while performing their duties. Apart from protecting individual managers, the policy can also offer reimbursements to the company if the company so decides to pay off the financial liability. The policy can also extend to cover the corporate entity against claims relating to offer, sale and purchase of securities in the market. On a broader scale, the policy can also be extended to cover liabilities arising out of employment practices which can include cases of discrimination and unfair employment practices.

D&O policy covers current, past and future directors and officers. It also covers outside directorship, part time directors and non executive directors. Some of the legal scenarios that can lead to a claim are Errors in Reporting, Omission & errors in Public Offering Prospectus, Incorrect decisions leading to financial loss, Non compliance with regulations, unfair treatment of employees etc. Obviously, the policy has certain exclusions. Some of the excluded scenarios include intentional non compliance, criminal acts and fraud.

In a nutshell, D&O insurance is supposed to perform the following functions:

Covers financial liabilities of directors and officers

  • Personal assets of individual directors can be protected.
  • Legal and other fees are reimbursed.

Protects the Organization

  • Protects the organization against securities claims or employment claims.
  • Can reimburse the settlement amount to the organization that chooses to defend its directors.

Recent Posts

Know More

Can I Transfer My Car Insurance if I Switch Cars?

Car insurance is the most important part of owning a car. But what happens when you plan to switch cars? Will the old policy apply? Or will you be required to apply for a new one? Read more...

Know More

What Happens if I Don’t Have Third Party Damage Cover in Car Insurance?

Third-party car insurance is the minimum cover required by UAE law, is affordable, covers the bare minimum, and provides injury cover. What happens, however, when not insured with a third-party insurance plan?

Know More

DIY Checks and Maintenance for your Car

Our cars need proper care, routine maintenance, cleanliness and check-ups to ensure proper well-being. How else can you ensure long car life longevity? Read more...