Directors and Officers Liability Insurance

Sidebar_image1 Sidebar_image1 Sidebar_image1
1 3 2 4 5 6
Sidebar_image1 Sidebar_image1 Sidebar_image1

Important features of Directors & Officers liability insurance

In today’s corporate world, it’s essential to have Directors and Officers liability insurance or D&O insurance. In this video, we’ll discuss the important features of a D&O policy and illustrate them with a real-life case study, so you can better understand how this coverage can benefit your organization.

Case Study

Tata Sons

The company ousted Cyrus Mistry due to his damaging statements, which were made on emotional grounds. Since the company is listed in the USA, the risk of investor actions is high, and the defense cost could be in millions of dollars. A directors & officers liability policy could cover the costs incurred by the company in defending itself in court in such a scenario.


Tata Sons and its subsidiaries are covered under directors & officers liability

D&O policies provide coverage against different types of risks including misleading statements. These policies safeguard the financial interest of the company’s directors.

Corporate should buy a D&O insurance policy to mitigate such risks.

What are the important features of the Directors & Officers liability insurance?

D&O policy covers:

  • Breach of trust
  • Breach of Duty
  • Wrongful Trade Practices
  • Managerial errors
  • Misleading statements

Types of claims covered under Directors and Officers Insurance

  • Racial discrimination claims
  • Accounting irregularities
  • Security related claims (for listed companies)
  • Management buyout claims
  • Corporate governance violation claims
  • Wrongful dismissal
  • Harassment claims brought by the employees
  • Breach of regulations

What are some common extensions under D&O Policy:

Let’s take a look at some common extensions available under a Directors and Officers (D&O) Liability policy.

  • Emergency cost
  • Special excess limit per non-executive Directors
  • Regulatory Crisis and Response Cost
  • Kidnap and response cost
  • Crisis communication cover
  • Discovery Period (after policy expiry) for retired Directors Liability
  • Extradition Cover-cost incurred in regard to extradition proceedings

To discover the complete advantages of D&O insurance and obtain further assistance, feel free to contact us at or call us at +91 9696683999.