Directors’ & Officers’ Liability Insurance(D&O) Policy
A director or an officer of a company may face a situation of being personally sued while discharging his duty in his/her official capacity. Publicly held companies have two to three times as many claims made against their directors and officers than privately or closely held companies.
- D&O insurance protects directors and officers against legal liability for wrongful acts committed or allegedly committed while discharging their official duties & responsibilities.
- Wrongful acts include but not limited to errors, omissions, misstatements, misrepresentation, misleading information, negligence, breach of duty.
- The Regulators are becoming more circumspect and watchful over the companies, apart from spurts in Public Interest Litigation
- The number of lawsuits filed by employees against their employers has been rising.
- There may be employment practices liability arising out of:
- Sexual harassment.
- Wrongful termination.
- Nepotism & favouritism.
- Negligent evaluation.
- Deprivation of career opportunity.
- Wrongful infliction of emotional distress.
- The employers can protect themselves against these and other types of employment claims by securing EPLI coverage.