Directors & Officers Liability Insurance

This covers the personal liability of Directors and Officers from the management of a corporation. It aims to protect their personal assets when they are alleged to have made wrongful actions or decisions.

Have an Inquiry?


D&O Insurance covers you for personal liability that arises from your management of a corporation/foundation/association. It aims to protect your personal assets when you are alleged to have made wrongful actions or decisions.


The Insured
• Past, present and future directors and officers of the company
• Position being held at the time the act was committed
• Directors and officers of the company and its subsidiaries (except for subsidiaries with a separate cover)
• Directors in affiliate companies but only those representing the interest of the insured company and its subsidiaries; does not cover directors of other shareholders
• Retired directors cover in case of non-renewal or non-replacement of policy

Wrongful Act
• Allegation or Actual
• Breach of duty, Breach of trust, Neglect, Error, Misstatement, Misleading statement, Omission, Breach of warranty or authority or Other act done or wrongfully attempted by any director or officer
• Capacity as director/officer

Claims Made Policy – indicates that the wrongful act should be within the policy period
• Date committed
• Date discovered
• Date reported to insurer

Retroactive Cover
• Full : claims-made policies that eliminate coverage for claims produced by wrongful acts that took place prior to a specified date, even if the claim is first made during the policy period; from the date of the company ’s incorporation (subject to insurer’ s approval)
• Inception date: from the inception date of the first policy issued

Known Acts and Circumstances –means insured ’s
• Duty to disclose
• Prior to policy period or continuity date –not covered

Loss that the insured may incur, the D&O policy will pay for:
• Damages awarded or judgments entered
• Settlements negotiated with the insurer ’s consent
• Legal cost and expenses awarded vs. the insured but only in connection with a judgment which is covered in accordance with the policy terms
• Defense cost (including defense cost for employment-related/ labor cases)

Claims – policy cover claims filed against directors and officers
• Only the director/officer is protected. Does not cover the company liability. Options to include Entity/ Company Liability for Employment Practices and Securities Claims only (under stand-alone D&O Policy).
• Administrative proceedings – legal compulsion to attend; defense cost cover; no wrongful act but an inquiry is conducted e.g. inquiries conducted by government agencies.
• Civil proceedings – both defense cost and award of damages regardless of the outcome of the case
• Criminal proceedings
– In case of acquittal – defense cost claimable against the policy
– In case of conviction – defense cost should be returned to the insurance company as criminal acts cannot be insured

D&O Insurance Coverage Benefits
• Protects the personal assets of the directors and officers and those of their spouses and estates.
• Protects the balance sheet of the company.
• Attracts and retains qualified outside/independent directors.
• Ensures funds are available for the defense of the directors and officers when the company ’s resources are not available.

Want to Know More?

Download brochure

Have any query?

Contact US

find this interesting?