Directors And Officers Liability Insurance

Understanding Director’s & Officer’s Liability

D&O offers cover for the business leaders in their personal capacity to protect against litigation for breaches of fiduciary responsibilities (acting with care and skill). The directors and officers policy is unusual in that it is issued in the name of the business but, the insured parties are actually the directors and senior management officials in their personal capacity. The policy responds to allegations of wrongful acts by the insured defined as; breach of duty, error or omission, misstatement or misleading statement.

Tell Me More

Who is at risk?

  1. Past, present, and future directors
  2. Employees and volunteers in a managerial / supervisory capacity, audit committee, risk committee
  3. President / CFO / CEO / Company Secretary
  4. Non-profit organizations: President/ Secretary / Treasurer

What is at risk?

  1. Personal liability: property, cars, assets, savings, pension funds are at risk
  2. Spouse, heirs and estates (may be named in a suit)
  3. Financial implications of defense costs could be catastrophic
  4. No other insurance policy will cover D&O exposureShould your assets be frozen, are you able to cover
  5. costs of schooling, housing, utilities and personalinsurance

What can the policy cover?

  1. Claims following “*wrongful acts ” by directors.Awards, damages and approved settlements to
  2. third parties
  3. Costs, charges and expenses incurred by the insured for the successful defense of allegations of any criminal act, willful misconduct, breach of trust, reckless trading or breach of authority by directors.

*Wrongful Act: breach of duty, error, omission, misstatement or misleading statement by the Insured in their capacity as directors

Where could claims come from?

Shareholders: accounting fraud, dividend declaration, financial performance (or lack thereof), breach of fiduciary duties.

Inadequate disclosure, insider trading, investment / loan decisions, bankruptcy, mergers and acquisitions

Employees: breach of contract, compensation duties, defamation, discrimination, employee benefits, employee conditions failure to hire or promote, harassment, whistleblowing, wrongful termination

Competitors: anti-competitive violations, business interference, contract disputes, copyright/ patent/trademark infringements

Customers: contract disputes, debt collection, fraud, refusal of credit

Liquidators / administrators / creditors / regulators / government

The Dawit Touch

With you every step of the way.

Dawit’s solution

  1. We encourage internal mechanisms for good governance.
  2. We will source quotations, evaluate and recommend underwriters to achieve the highest benefit at best cost available.
  3. Once the cover is effected, this policy should never lapse as it then exposes you to long-tail claims as exposes past directors and officers.
  4. The Dawit team will be available to assist in the claim process to ensure settlement.

Dawit’s nuggets

  1. Once the D&O policy is placed, keep the policy current. When it lapses and a gap follows, history is forgotten and there exists real exposure to past directors.
  2. As soon as you become aware of a situation that may result in a claim, please file a claim notice. This way , you avoid being time-barred in claim reporting.

Be assured you're in safe hands. We have over 15 years of experience in the industry having won a multitude of awards from various insurance companies.

Interested in learning more?

Don't wait any longer to protect youself. Let's kick-off the conversation today.

Interested in Directors and Officers Liability Insurance?

D&O offers cover for the business leaders in their personal capacity to protect against litigation for breaches of fiduciary responsibilities (acting with care and skill). The directors and officers policy is unusual in that it is issued in the name of the business but, the insured parties are actually the directors and senior management officials in their personal capacity. The policy responds to allegations of wrongful acts by the insured defined as; breach of duty, error or omission, misstatement or misleading statement.

Utumishi Coop Building, Mamlaka Rd, Off Nyerere rd.
020 2011503