Directors and officers liability

Overview

According to the Company’s Act, individual shareholders, on behalf of the company, can bring  a suit against a director on the grounds of negligence, default, breach of duty or breach of trust by the said director as a consequence of their action; actual, proposed act or omission. Consequences include personal liability for fines and sanctions.

Directors and Officers Liability cover therefore protects directors and officers against any claims alleging negligence, errors and omissions, misstatements, misleading statements, and misrepresentations. It protects executives from potential lawsuits resulting from key decisions or management practices, lawsuits that may target their personal assets.

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Scope

Provides coverage to past and future directors and officers for losses arising out of a claim made against him for which he has not been indemnified by the corporation he is serving. Most organizations have a general liability policy that protects its directors and officers against negligent acts that result in bodily injury or property damage.

However, general liability does not protect against alleged wrongful acts or omissions, including breach of duty, which do not result in bodily injury.

Limit of Liability is made in aggregate, not made per occurrence.

 

Cover Benefits

Metropolitan Cannon will cover for Losses incurred including:

  • Judgments costs
  • Settlements costs
  • Defense Costs

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