Directors and Officers Liability Insurance (D&O)

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(Why) do Directors and Officers need D&O Liability?


Increased Personal Responsibility

Directors and Officers can now be personally sued by shareholders, creditors, customers, employees and members of the public


Increased Litigation

As individuals and companies become more aware of their rights, they are increasingly turning to litigation to cover loss


Increased Regulation

Company affairs are coming under increasing scrutiny from Government and Industry regulatory bodies. The costs of legal representation during such investigations can be significant, regardless of whether court action follows



(What?) does Directors and Officers Liability Insurance (D&O)


It cover Director or Officer against wrongful act

Covers any past, present or future Director or Officer or Commissioner, secretary or employee of the Company or any natural person who by virtue of any applicable legislation or law is deemed to be a Director or Officer or Commissioner;


Against any actual or alleged wrongful act or omission including any misstatement, misrepresentation, breach of trust, breach of duty or breach of warranty of authority committed by an Insured Person (Director or Officer or Commissioner)


D&O provides covers for……………

• Civil Proceedings

• Employee Actions

• Prospectus Liability

• Official Investigations and Inquiries

• Successful Defense of Criminal Proceedings

• Outside Directorships (optional Extension)


D&O provides Automatic Extensions for……………

• Libel and Slander

• Intellectual Property

• Employment Practice Liability

• Automatic Cover for Subsidiaries

• Subsidiary Run-off Cover

Official Investigations and Enquiries

• Severability and Non-imputation

• Estates and Legal Representatives

• Additional Reporting Period

• Advance Payment of Defense Costs


D&O provides Optional Extensions for……………

• External Positions (Outside Directorships)

• Pollution

• Joint Venture Liability

Entity Cover


Who are the Insured Person?

any past, present or future

  • Director
  • Officer
  • Commissioner
  • secretary
  • employee

Who claims against Directors and Officers?



Directors and Officers can now be personally sued by….

• Regulatory Authorities

• Creditors

• Shareholders

• Competitors

• Members of the Public

• Liquidator / Receivers

• Employees

• Customers



Regulatory Authorities

Surrounded by a climate of accountability, Directors and Officers may be subject of inquiries or prosecutions by government regulatory bodies set up to monitor industry, For example, competition, company and tax authorities are vigilant and may investigate such problem as alleged price fixing by a number of companies, or may prosecute if they suspect that account have been signed which are not a true and fair record



Directors and Officers may be personally liable to creditors for continuing to trade or distributing dividends whilst the company is insolvent.



Shareholders may bring proceedings in the name of the company against Directors and Officers personally alleging……….

ü       Mismanagement of company assets or imprudent loans and investments

ü       Failure to arrange adequate insurance

ü       Negligent recommendations or incorrect public statements concerning acquisitions, mergers or capital restructuring


Members of the Public

Claims could be brought by members of the public alleging misrepresentation in the prospectus to entice debenture holders or shareholders to invest in the company



Disgruntled competitors could bring proceedings against Directors and Officers alleging misleading advertising, for example, advertising that unfairly compares the company’s product to that of the competitor’s

………..price fixing;……..dumping of product in the market…, competitors who allege that their business has been adversely affected would be likely to claim against them.


Liquidator / Receivers

A liquidator / receiver could sue the Directors and Officers on behalf of the company for alleged breaches of duties owed to the company



Employees may bring proceedings against Directors and Officers alleging unfair dismissal, discrimination or sexual harassment.



Customers may bring actions against Directors and Officers alleging breaches of the consumer laws, for example misrepresentations made in advertising material or deceptive trade practices.







To obtain a quote, proposal or inquiry

Please call: 08128079130

Or email:





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  1. Directors and Officers Liability Insurance (D&O) – Asuransi untuk Direktur & Komisaris dalam pengelolaan perusahaan. « AHLI ASURANSI

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