INTRODUCTION TO D&O
Liability of Directors and Officers
Directors and Officers may be liable to
Coverage
The Policy shall cover “Loss” which means legal liability of the Directors or officers to pay damages or costs awarded against them and costs and expenses incurred by the directors or officers with the written consent of underwriters in respect of investigation, defence or settlement of any claim.
Here a wrongful act shall mean any actual or alleged breach of duty, trust, neglect, error, misstatement etc attempted by any director or officer
The coverage is granted in two Parts
Coverage A
The policy pays compensation on behalf of the directors or officers of the company for loss arising from any claim by reason of any wrongful act committed in the capacity of Director or Officer of the company.
Coverage B
If a company pays the loss of an insured person due to any wrongful act of the insured person, the insurer will reimburse the company for such loss.
This may be due to Common Law, or Memorandum and Articles of Association. This is known as Company Reimbursement Provision.
Exclusions
For any insurance solutions, please contact Beacon Insurance at https://www.beacon.co.in/
Insurance is a subject matter of solicitation
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