Protection for a range of Directors' & Officers' exposures.
In today’s corporate environment, the role of the director is not only demanding but individuals holding such a position have an increasingly high exposure to risk. Beholden to company shareholders, financial regulators and government agencies, a director faces potential legal liabilities on all sides.
With the onset of more stringent corporate governance guidelines and complex legislation, the risks and responsibilities borne by directors and officers worldwide are ever increasing.
Directors’ and Officers’ Liability Insurance (D&O) is the most effective means of ensuring a level of protection against the potential costs of defending a court case, regulatory investigation or the settlement of a claim. Failure to purchase such cover can be costly for businesses and put the personal assets of directors at risk.
In addition to covering the cost of defending legal proceedings, an effective D&O policy should also offer specific protection against the following:
- Investigation by governments and regulators
- Damages awarded by a court
- Civil sanctions (fines and penalties)
- Claims made by dissatisfied employees
- Claims made against the directors by the company itself
- Claims made against the directors of subsidiary companies
- Claims made against individuals in their capacity as directors of external entities, with positions held on the insured company’s behalf
We would also urge clients interested in D&O insurance to consider a number of closely related insurance products to further strengthen overall protection levels, including:
- Public Offerings Insurance (Prospectus Liability)
- Public Officials Liability Insurance
- Side A Insurance (directors only cover)
- Trustee Liability Insurance
- General Partner Liability Insurance