Directors & Officers Insurance Policy Coverages

Acts commonly covered

• Personal Liability of Company Directors & Officers as individuals (current, future and past)
• Reimbursement of the insured company in case it has paid a claim to a third party on behalf of the companies managers in order to protect them
• Listed stock companies can also obtain cover for claims against the company itself for a wrongful act in connection with the trading of its securities
• Any breach of fiduciary duty, errors, reporting errors, omissions (except Professional Liability), misleading and wrongful statements, inaccurate or inadequate disclosures, misrepresentation in a prospectus;
• Any act in the capacity of Director or Officer;
• Any act in the capacity of Director or Officer of an Outside Entity;
• Any employment Practice Violation & Human Resources issues
• Shareholder actions
• Decisions exceeding the authority granted to a company officer
• Failure to comply with regulations or laws

Policy for D&O can cover

• Defence costs
• Costs under the court decision or amicable agreement
• Damage to reputation, regulatory crisis response costs, emergency costs (subject to the type of extensions applied)

D&O coverage can also include

• Inclusion of directors and officers of subsidiary.
• No deductible in cases of non-identifiable loss.
• Advance deposits against legal fees.
• Agreed upon panel of legal consultants

Typical Exclusions

• Fraudulent or criminal acts
• Intentional non-compliant acts
• Illegal remuneration or personal profit
• Property damage and bodily harm (except corporate manslaughter)
• Claims made under a previous policy
• Claims covered by other insurance