Directors’ and officers’ liability insurance (D&O Insurance) protects you against compensation claims for alleged wrongful acts against your business’s directors and key managers by shareholders, employees, investors, regulators, or third parties.
Wrongful acts include:
As indicated by their relevant job descriptions, directors and officers have specific duties, powers, and responsibilities that relate to their positions. In the event that a company director or officer is alleged to have breached their terms of reference, civil, criminal, or regulatory measures can be levied against them.
If a director or officer does not have D & O insurance, they have a greater risk of being inadequately protected against:
Directors’ and officers’ liability covers claims made by:
It also covers claims brought in relation to:
As an extension of D & O insurance, you may also choose to purchase employment practices liability insurance as an add-on, which would cover employee discrimination claims (e.g. for unfair dismissal, harassment, or failure to promote).
Please note that D & O liability insurance only covers claims made against individuals for alleged wrongful acts carried out in their position as directors or officers, and does not cover your business as a whole.
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