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Directors and Officers Liability

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Directors and Officers Liability

Directors and officers (D&O) liability insurance protects corporate directors and officers in the event that they’re personally sued for actual or alleged wrongdoing when managing a company. The insurance helps cover defence costs and damages (awards and settlements) arising out of wrongful action allegations and lawsuits.;

Wrongful acts include:
  • - breach of trust
  • - breach of duty
  • - neglect
  • - error
  • - misleading statements
  • - wrongful trading

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The Policy is written in two sections as follows:

  • The Directors and Officers Liability Section indemnifies the Directors and Officers in respect of any “Wrongful Act” committed in their capacity as Directors and Officers of the Company, where the company is not permitted (either legally or by its articles of Association) to reimburse them.
  • The company reimbursement section covers the Company only in respect of any reimbursement that it is required, or permitted by law to make to its directors and officers against whom a legal action has been sought

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