D & O Liability Insurance
Not just the naughty boys on your Board of Directors who can bring a headache or two in the form of lawsuits. The sources of possible actions against directors are wide and varied. Directors are particularly exposed following merger and acquisition activity and company liquidations. Employee actions against directors are another frequent source of claims in areas such as racial discrimination, harassment and unfair dismissal. Further actions can arise as a result of Regulators actions under various statutes, such as the Companies Act 1956, Securities and Exchange Board of India Act 1992, Foreign Exchange Management Act 1999, etc.
The regulatory environment facing the directors of todays companies is more rigorous than that of the past and the near future will see even tighter legislation and increasing globalization of business, thus subjecting directors and officers to closer scrutiny from shareholders, customers, employees, suppliers and regulators not just in the global market place but also in their domestic environment.
Also, as Indian companies foray into the global marketplace to sell their products and services or to mobilize capital, they need to purchase D&O insurance to secure protection from overseas exposures.
Defence costs and damages in such actions can vary from a few Lakhs of Rupees to millions of Dollars and the length of time taken to settle cases can extend from several months to several years.
The D&O policy provides cover for the personal liability of Directors and Officers arising due to wrongful acts in their managerial capacity. Defence costs are also covered and are payable in advance of final judgment.
Why D & O
- Vulnerability to shareholder/stakeholder claims
- Sexual harassment, discrimination allegations and other employment practice violations
Product Description
Not just the naughty boys on your Board of Directors who can bring a headache or two in the form of lawsuits. The sources of possible actions against directors are wide and varied. Directors are particularly exposed following merger and acquisition activity and company liquidations. Employee actions against directors are another frequent source of claims in areas such as racial discrimination, harassment and unfair dismissal. Further actions can arise as a result of Regulators actions under various statutes, such as the Companies Act 1956, Securities and Exchange Board of India Act 1992, Foreign Exchange Management Act 1999, etc.
The regulatory environment facing the directors of todays companies is more rigorous than that of the past and the near future will see even tighter legislation and increasing globalization of business, thus subjecting directors and officers to closer scrutiny from shareholders, customers, employees, suppliers and regulators not just in the global market place but also in their domestic environment.
Also, as Indian companies foray into the global marketplace to sell their products and services or to mobilize capital, they need to purchase D&O insurance to secure protection from overseas exposures.
Defence costs and damages in such actions can vary from a few Lakhs of Rupees to millions of Dollars and the length of time taken to settle cases can extend from several months to several years.
The D&O policy provides cover for the personal liability of Directors and Officers arising due to wrongful acts in their managerial capacity. Defence costs are also covered and are payable in advance of final judgment.
Why D & O ?
- Vulnerability to shareholder/stakeholder claims
- Sexual harassment, discrimination allegations and other employment practice violations
- Regulatory investigations
- Accounting irregularities
- Exposures relating to mergers and acquisitions
- Corporate Governance requirements
- Compliance with various legal statutes
Who can sue the Directors and Officers ?
- Employees
- Suppliers
- Competitors
- Regulators
- Customers
- Shareholders
- Other stakeholders
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About the Company
Thank you for visiting our website, which truly reflects our operational philosophy by being direct, simple and easy to help you buy your insurance cover.
Dr. Insurance is a boutique business consulting advisory that helps organizations proactively overcome the challenge of buying the right insurance cover at the best price and derive the best service support when a Loss / Damage happens....
Seller Contact Details
Ulsoor Road
Ulsoor
Bengaluru - 560008, Karnataka, India
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