More Details

Salient features

• Former, present, future directors are all covered. (All wrongful acts committed or alleged to have been committed).
• Parent company and existing subsidiary companies covered
• Defence costs payable (even in alleged criminal cases, if directors and officers are finally acquitted)
• Cover on claims: wrongful act committed or alleged to have been committed and all liability reported during the period covered

Sum insured

The policy is a subject to the terms and conditions, advance defence costs and allows for settlements / judgments / awards against insured persons for their wrongful acts.

The insurance policy has two coverage clauses:

• Legal liability towards claims made against the insured Person (s) to the extent not indemnified by the insured organisation
• Reimbursement to the insured organization on account of indemnification to each insured person. The policy additionally covers heirs, estates and legal representatives and spousal liabilities.

Premium

Premium chargeable depends on the:
• Limits of indemnity
• Industry of the proposer
• Management perception to various stakeholders
• Capital structure of company: Source of shareholder funds - foreign v/s domestic exposure, debt structure
• Credit rating of the company to honour future financial commitments
• Clientele of the proposer
• Annual turnover
• Auditors of the company
• Information gathered about the company from public source

Significant exclusions

This policy does not cover:
• Liability for criminal wrongs
• Fines and penalties for civil wrongs
• Prior or pending litigation
• Suits or arising from person who is a major shareholder
• Bodily injury/ property damage
• Infringement of intellectual property rights

Main extension

• Crisis Communication Cover
• Risk Management Extension
• Pollution Defence Costs Extension
• Extended reporting Period
• Auto inclusion of new subsidiaries