D&O Liability Insurance introduction
Director & Officers (D&O)
Liability Insurance
Directors and Officers Liability insurance provides essential cover for a company’s senior leadership against claims that may arise against them. D&O insurance majorly covers defense costs against regulatory investigations or action took by a group of shareholders against the company.
D&O is essential to many large especially those fast-growing companies and listed companies as the financial consequences of such an event could be disaster for a company, and devastating to the directors themselves at a person level.
There are expanding liabilities to many companies as they now require sophisticated corporate governance standard. They also need to manage the costs related to a regulatory investigation or a class action shareholder lawsuit. The costs related to investigation can be growing quickly.
In addition, shift in regulatory approach around IPOs poses test for corporate governance at company boards.
Target audience
Who is covered?
- Past, present and future directors
- Non-executive directors
- Employees in a managerial or supervisory capacity.
Protection
Common D&O Risk Scenarios
- Employment practices and HR issues
- Shareholder actions
- Reporting errors
- Inaccurate or inadequate disclosure
- Misrepresentation
- Decisions exceeding the authority granted to a company officer
- Failure to comply with regulations or laws
- Corporate manslaughter
- Insolvencies
- Creditor claims
- Mergers and Acquisitions
- Diverstitures
- Competitor claims
- Claims made by the company
Exclusions
What are exclusions
Standard exclusions (please refer to the the policy, that may vary between different insurers)
- Breach of Contract
- Personal Gain
- Discrimination/Wrongful Termination
- Dishonest, Wrongful, Fraudulent Conduct
- Fines, Penalties, and Punitive Damages
- Prior Acts
- Defamation, Libel, and Slander Claims
- Catastrophic Hazards, such as war, environmental damage etc.
procedure
What is the claims procedure?
D&O insurance grants cover on a claims-made basis. This means that claims are only covered if they are made while the policy is in effect or within a contractually agreed extended reporting period, which can extend up to another 72 months or even longer in some countries.
Capabilities
Why choosing SWI as your broker?
SWI core team comes from the top global insurers and has more than 10 years experience in D&O liability insurance, and understand risks and different industries.
Experienced team
Our core team has more than 10 years experience in D&O insurance. We understand how to work with you and your needs for risks management.
Our insurer network
Because of the connections and our relationship with the insurers, we can bargain the better terms and price.
LET'S TALK
Need more information? Talk to us
If you need more information about D&O insurance, please contact us and our expert will get back to you soon.