Directors' liability insurance
10 July 2011 Reading: 2 min Views: 3 795
Directors', officers' and company liability insurance protects the Directors and Officers of the Company and its Subsidiaries against possible Claims against the Directors and Officers and the Company. Third parties may include:
• Shareholders, employees
• Other third parties (including clients, competitors and others.)
Claims may relate, among other things, to:
• any breach of management duties, negligence, omission, error (but not Professional liability), misleading or erroneous statement;
• any actions taken by a director or officer in the course of performing their official duties;
• the performance by a director or officer of official duties in an Outside Entity;
• Employment practices violations.
Claims may be brought in the form of a written demand for monetary or non-monetary relief, or administrative proceedings.
Directors' liability insurance covers:
• compensation for damage caused under a court judgment;
• compensation for damage caused under an out-of-court settlement:
• Legal costs.
The policy is issued on an annual basis and (in the absence of special arrangements) applies worldwide.
The cover provides for:
• automatic inclusion of new subsidiaries whose assets do not exceed 10% of the parent company's assets.
• an agreed list of top-tier legal counsel**.
• a zero deductible for non-indemnifiable losses
• advancement of legal costs.
All of the above covers are provided in accordance with insurance terms that may be offered on the basis of a questionnaire completed by the policyholder and other documents (listed in the questionnaire) required to assess the risk.
One of the most important components of this insurance is the protection of the company and its directors against possible claims in North America related to the company's activities in the US and Canadian markets and the circulation of GDRs and ADRs (if any) on various exchanges, as well as on the over-the-counter market.
• Shareholders, employees
• Other third parties (including clients, competitors and others.)
Claims may relate, among other things, to:
• any breach of management duties, negligence, omission, error (but not Professional liability), misleading or erroneous statement;
• any actions taken by a director or officer in the course of performing their official duties;
• the performance by a director or officer of official duties in an Outside Entity;
• Employment practices violations.
Claims may be brought in the form of a written demand for monetary or non-monetary relief, or administrative proceedings.
Directors' liability insurance covers:
• compensation for damage caused under a court judgment;
• compensation for damage caused under an out-of-court settlement:
• Legal costs.
The policy is issued on an annual basis and (in the absence of special arrangements) applies worldwide.
The cover provides for:
• automatic inclusion of new subsidiaries whose assets do not exceed 10% of the parent company's assets.
• an agreed list of top-tier legal counsel**.
• a zero deductible for non-indemnifiable losses
• advancement of legal costs.
All of the above covers are provided in accordance with insurance terms that may be offered on the basis of a questionnaire completed by the policyholder and other documents (listed in the questionnaire) required to assess the risk.
One of the most important components of this insurance is the protection of the company and its directors against possible claims in North America related to the company's activities in the US and Canadian markets and the circulation of GDRs and ADRs (if any) on various exchanges, as well as on the over-the-counter market.
