D&O Insurance (Directors & Officers Insurance) covers the personal liability of directors and officers as well as their spouses in case they are personally sued by vendors, investors, employees, competitors, customers, or other parties for alleged or actual wrongful acts while performing their duties.Read more
Quick & Hassle free
+Premium varies on the basis of Occupancy, Business Activity & Coverage Type
Directors and officers insurance offers coverage for unexpected liabilities arising against the managers for any decision or action taken by them as a part of their duties. Organisations usually purchase D&O insurance policies to protect their directors and officers from expensive lawsuits. Also, if the organisation does not have this insurance then it is highly unlikely for them to attract managerial-level talent because the risk involved is high.
If the organization cannot financially cover its employees, directors and officers then this policy steps in to save the day by paying those costs and protecting the person’s personal assets. However, if the company can indemnify the cost then D&O insurance will reimburse the paid amount.
Here are a few reasons, why D&O Insurance is required in an organisation:
Here are some of the features and benefits of Directors and officers insurance:
There are two primary clauses under D&O insurance with the option of selecting a third clause:
|Cover||Description||Who is Insured?||What is at risk?|
|Side A||Insurer pays on behalf of directors & officers for any claim made directly against them when a company cannot pay for it or is not allowed legally. There is no deductible and retention in Side A cover, however, the personal assets are covered.||Individual Directors, officer or manager||Personal Assets|
|Side B||Company pays on behalf of directors and officers and then gets reimbursement for the amount paid in indemnifying the directors and officer from claims made against them.||Company||Corporate Assets|
|Side C||Insurer cover the entity for securities litigation claims. Insured can raise a claim against the company itself for a wrongful act in connection with the trading of its securities.||Company||Corporate Assets|
D&O liability insurance provides coverage for the following:
The D&O policy does not provide coverage for the following:
Here is a list of people who can get covered under D&O insurance:
D&O insurance in real life is pretty simple. It all begins when a manager allegedly fails to perform their duty. Some of the common scenarios include reporting errors, insolvency, employment malpractice, regulation violation, etc. and as a result, several claimants end up suing the manager and that's when the D&O insurance policy gets triggered.
Follow the below-mentioned steps to raise a claim under directors liability insurance:
To renew your Directors and Officers liability insurance coverage, follow the below-mentioned steps.
Step 1: Go to the Policybazaar Insurance Brokers Private Limited official website.
Step 2: Fill in your policy number to get into your account
Step 3: You can add or remove any add-on if you want as you can do it only either at the time of purchasing the policy or while renewing it
Step 4: The premium amount of your updated insurance plan will be shown as per your addition or removal of any add-on
Step 5: Click on the “Renew” button
Step 6: Make the payment using your debit/credit card, UPI or net banking
Step 7: Once the payment is done, the insurance company will send the updated insurance policy’s soft copy to the registered email. Apart from this, a hard copy of the policy is also sent to the registered home address in a few days
*To avoid the cancellation of the policy, make sure to renew your directors liability insurance on time.
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