Directors and officers of companies are accountable to all stakeholders of the company, including the shareholders, the employees, and the general public. One wrong move by them can result in legal hassles. The possible consequences of various allegations such as above may lead to either civil or criminal action being brought against directors and officers. The Reliance Directors and Officers’ Liability Insurance Policy provides cover against different civil and criminal actions that directors and officers might be exposed to.
Coverage applies only to claims made against the insured during the period of insurance, irrespective of when the wrongful act occurred.
The Policy offers three covers:
For the Directors and Officers: Pays on the behalf of the directors and officers all loss arising out of a claim for wrongful act for which coverage applies under this Policy and for which the Directors and Officers are not entitled to indemnification from the Company.
For the Company: Pays on the behalf of the Company all loss arising out of a claim for wrongful act for which coverage applies under this Policy and for which the Company is permitted or required by law to grant indemnification to the directors and officers.
For Advancement of Legal Costs: Covers the legal costs reasonably incurred by the directors/officers in defending any claim against them before civil and criminal courts in respect of a Wrongful Act for which coverage applies under this Policy.
For Regulatory Proceedings: Pays the legal costs reasonably incurred by directors/officers in respect of their attendance at regulatory proceedings.
The following extensions are available to cover:
- Extended Discovery Period
- Auto Acquisition of Subsidiaries
- Outside Directorships
- Crisis Communication Cover
- Court Attendance Costs
- Pollution Defense Costs
- Director Versus Director
- Allocation of Legal Costs
- Fines and Penalties
This Policy does not apply to claims resulting from:
- Circumstances notified under a prior insurance policy
- Bodily injury, sickness, disease, death, damage, or destruction of tangible property including loss of use
- Bodily injury, sickness, disease, death, damage, or destruction resulting from the hazardous properties of radioactive or nuclear material or of any radioactive or nuclear facility
- Nuclear or radioactive material threat
- Deliberate, dishonest or fraudulent acts, or omission or profit or advantage wrongfully gained by the directors/officers
- Pollution claims, intentional or accidental, including remedial measures (except to the extent any Claim is brought derivatively by a security holder of the Company who, when such Claim is first made, is acting independently of the directors and officers and the Company)
- Payment of remuneration to the directors and officers without the required, previous approvals under the existing laws
- The directors and officers or the Company carrying out, or failing to carry out, professional services to a third party or any act, error or omission relating thereto
- Directors/Officers suing each other, unless such claim is brought by or against a former director or officer, or is in respect of an employment dispute