Directors and Officers Liability
The D&O policy provides cover for the personal liability of Directors and Officers arising due to wrongful acts in their managerial capacity. Defence costs are also covered and are payable in advance of final judgment. This policy provides protection for claims brought against directors, officers and employees for actual or alleged breach of duty, neglect, misstatements or errors in their managerial capacity.
The core purpose of a D&O policy is to provide financial protection for managers against the consequences of actual or alleged “wrongful acts” when acting in the scope of their managerial duties. The D&O policy will pay for defence costs and financial losses. In addition, some extensions to D&O policies also cover costs for managers generated by administrative and criminal proceedings or in the course of investigations by regulators or criminal prosecutors. These coverage extensions are gaining more and more importance among company directors. In this way, managers receive comprehensive, integrated cover that ensures them a reliable, consistent and structured legal defence.
Commercial General Liability
CGL policy covers a wide range of liability loss exposures of commercial organizations. The loss exposures come under following broad categories:
Premises and Operation Liability Risks
Products and completed operations Liability Risks
Limited Contractual liability
Personal and Advertising injury liability
Public Offering of Securities Cover
Increased market exposure typically in case of a Public Offering of Securities, leads to increased stakeholder litigation and with this increase in litigation comes a growing awareness of the responsibilities incumbent on the directors and officers of companies.
Signatories of a public prospectus have a personal responsibility for its contents and could therefore be found personally liable for the losses of securities holders arising from misrepresentations within the prospectus. These potential liabilities arising out of the issue of a prospectus can be very large. Most securities actions are fuelled by unfulfilled investor expectations, so as well as being substantial, legal actions can also occur much after the transaction. IPO Insurance (also known as Public Offering of Securities Insurance – POSI) addresses these uncertainties by ring-fencing securities exposures in a single premium, transaction-specific policy
POSI protects the insureds against securities claims arising from an offering of a company’s securities.
POSI can also cover liabilities arising from negotiations, discussions and decisions in connection with the offering.
Cover includes punitive and exemplary damages.
Errors & Omissions (Professional Indemnity)
The policy covers all sums which the insured professional becomes legally liable to pay as damages to third party in respect of any error and/or omission on his/her part committed whilst rendering professional service. Legal cost and expenses incurred in defence of the case, with the prior consent of the insurance company, are also payable, subject to the overall limit of indemnity selected.
Only civil liability claims are covered. Any liability arising out of any criminal act or act committed in violation of any law or ordinance is not covered.
The policy provides cover for any insured employee who may sustain personal injury by accident or disease arising out of and in the course of his employment. The company will indemnify the insured against all sums for which the insured is held liable to pay to his employees under Workmen’s Compensation Act, 1923, the Fatal Accidents Act 855 and at Common Law.
And also, the costs and expenses incurred with the consent of the company in defending any claim for such compensation.
All the employees in the enterprise, as per the provisions of W.C. Act are to be insured.