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DIRECTORS & OFFICERS LIABILITY POLICY

The Directors and Officers Liability Policy covers the legal liability including the costs to defend any civil and / or criminal action against the Directors and / or Officers holding a responsible position in an organisation for any wrongful act, error or omission committed by them in course of their discharge of duties, in running the operations of the company and any other acts for and /or on behalf of the company.

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What's Covered

This liability insurance policy provides coverage for

Awards made against you as a Director / Officer
Claimant's legal costs awarded
Own legal expenses incurred in defence
The company is only covered to the extent of legal expenses incurred in defending a Director/ Officer proceeded against subject to terms and conditions of the policy.

What's Not Covered

We will not pay for:

Contractual liabilities
Loss of goodwill/ market, consequential losses
Libel, slander, false arrest, defamation (personal injuries) and mental injury including shock, anguish etc.
Fines, penalties, punitive damages
War and nuclear perils

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Likely Claimants

The most likely persons or entities to file a suit against you are
Shareholders
Public
Employees
Regulatory Bodies
Customers
Competitors
Interest Groups

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Policy Consists

Section 1: Company Reimbursement Section

This section relates to the insurance cover of the company itself
Covers the obligations of the company (as per Articles of Association) to indemnify its Director/ Officer to defend against any civil/ criminal action)
Reimbursement is limited to only the legal costs expended and that too, if the action is successfully defended by the Director/ Officer.

Section 2: Directors and Officers

This section relates to the insurance cover of the Director/ Officer
If action against the Director/ Officer is successful, then he is on his own and is exposed to legal costs as well as the damages awarded against him by the Courts. The employer company in such a situation will not indemnify him and this section comes into operation, provided the Director/ Officer has not acted in a deliberately dishonest manner.