Directors’ and Officers’ Liability
Directors and officers (D&O) liability insurance protects the personal assets of corporate directors and officers, and their spouses, in the event they are personally sued by employees, vendors, competitors, investors, customers, regulators or other parties, for actual or alleged breach of duty, neglect, misstatements or errors in their management capacity.
D&O policies can take different forms, depending on the nature of the organization and the risks it faces.
Directors and officer’s liability insurance claims are paid to directors and officers of a company or the organization for losses oet5rs7tsr reimbursement of defense costs if a legal action is brought against them.
The policy offers cover against civil and criminal actions to the Directors and Officers from:
- Employment Practice litigations
- Criminal and Regulatory investigations
- Customer suits
- Accounting irregularities
- Other stakeholder claims
Below factors are taken into account while determining the risk factors and the resulting premiums for this insurance policy:
- Financial Conditions of the company / organization
- Business Activities
- Quality of Management
- Diversity of Business Activities
- Length of time in business
- Mergers & acquisitions
- Organization Structure
- International Operating Exposure
- Claims history
Directors and Officers can be held liable for acting wrongfully or illegally while performing their respective duties. Such acts can lead to a financial liability and this insurance policy is drafted specifically for these situations. Hence, Directors and Officers Liability Insurance is a very cost-effective way to safeguard against these potential losses. We at New Age Insurance Brokers can work with you to design the D&O policy to best suit your individual needs.