Directors’ & Officers’ Liability Insurance Policy

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.