Directors and Officers Liability Insurance
Helping directors face the future and conduct their business with confidence.
Why boards and senior management need D&O
Administrators, managers and directors of any company, regardless of its size or activities, carry significant responsibilities in relation to the way they conduct themselves and justify the trust placed in them. This may result in claims against them for actual and alleged breach of duty, neglect, misstatements, errors and omissions.
Personal and professional responsibility
Actions against the company and its management can involve a high degree of personal liability for the individuals. With potential penalties that range from hefty fines, all the way to disqualification and possible imprisonment, the need for an immediate and effective response to any threat is clear.
Taking the pain out of investigation
There is a growing number of governing bodies or authorities who can investigate a company and today more attention is being focused of smaller companies. Even if an individual is not yet personally under investigation, immediate expert legal guidance can help and perhaps stop the situation becoming more serious.
The best possible defence
Investigations and court cases are time consuming and very expensive. D&O cover from AIG assures its protected that they will have the highest quality legal representation and assistance from the first moment that an action commences.
Shared responsibility
As directors and managers are between them jointly and severally liable, an error on the part of one can have financial and personal consequences for the others, who may have acted completely correctly. Strong cover, that ring-fences the cover individuals can receive, can help build the confidence required to work together.
Protection that responds to the world
AIG is the world leader in D&O insurance and we ensure our clients are protected against new and emerging types of risk, updating our cover regularly. This expertise extends to the support of our claims teams, who can draw upon the experience of our world-wide network.
Who is it for?
Directors and officers of public and private companies of all sizes engaged in various business areas, including: Manufacturing, Utilities, Services, Retail, Wholesale, Chemicals, Agriculture, Pharmaceuticals, Engineering, Real Estate, and Transportation. AIU is considered the most innovative D&O market and will consider unique risks for coverage.
For firms based outside of the USA and Canada, coverage may be written on a worldwide basis, including the jurisdictions of the USA and Canada. For USA and Canadian companies, coverage plans are offered for foreign operational exposures and for liabilities arising from products exported from the home country.
What is covered?
The Commercial Directors and Officers Insurance policy provides coverage for claims brought against directors and officers of a company for actual or alleged breach of duty, neglect, misstatements, errors or omissions.
Coverage includes advancement of defense costs granted prior to final disposition of a claim for individuals when the corporation cannot provide such costs.
Reimbursement for indemnification of directors and officers for any judgments, settlements and defense costs associated with covered claims when the company has indemnified the insured for loss.