Why is Directors and Officers liability insurance policy required?

• 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 bring an action against Directors and Officers?

• Employess
• Suppliers
• Competitors
• Regulators
• Customers
• Shareholders
• Other stakeholders

Who does the cover apply to?

Why should Indian companies buy Directors and Officers liability insurance?

Indian companies need to purchase D&O insurance to protect their Directors and Officers from exposures arising out of compliance with various statutes. Directors have highly demanding legal obligations to uphold. They also have a fiduciary duty to exercise skill, care and diligence. Further, even independent and nominee directors are held to be equally accountable to stakeholders.

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.

D&O Insurance for Small & Medium-Sized Companies

Today's businesses operate in a fast-moving and dynamic environment. Management is closely involved in the day-to-day business operations and important business decisions have to be made on the spot. Such entrepreneurial environment can have a dangerous downside as well. Because the management is so closely involved in daily operations and is often making key decisions, small company owners and managers are extremely vulnerable to lawsuits from regulators, shareholders, customers, competitors, employees and government bodies amongst others. A costly lawsuit of this kind can have a particularly severe impact on individuals since the owner's personal net worth is often tied to the financial health of the company. Keeping this in view, Insurance companies have designed a pre-underwritten Directors and Officers liability insurance policy called Highlight which is designed specifically for the needs of unlisted small and medium sized enterprises.

• Highlight D&O policy offers an easy way for small and medium-sized companies to secure protection for their Directors and Officers from such lawsuits and claims.
• Experts from the Insurance Company can help assess the amount of coverage your company needs based on your risk exposure and offer you comprehensive protection at affordable premiums.
• extensive resources and state-of-the-art customer service makes managing risk simple and cost-effective.

Highlight covers claims made on Directors and Officers of a company by stakeholders including:

Shareholders, Regulatory Agencies, Joint Venture Partners, Lenders, Suppliers, Customers, Consultants, Employees, Trade-Unions.

The Defence costs involved in the claim are also covered under the policy and are payable in advance of final judgment.

Why do you need Highlight?

To protect a company's Directors and Officers from:

• Employment Practice litigations
• Regulatory investigations
• Customer suits
• Accounting irregularities
• Other stakeholder claims