By analyzing all the above mentioned details about the Directors and Officers Liability Insurance, it is evident that this is indispensable for a business. Directors and officers are fiduciaries of the corporations they serve. The Company shall maintain directors and officers liability insurance coverage covering Executive in amounts customary for similarly situated companies in the pharmaceutical industry and with insurers reasonably acceptable to Executive.All policies for such coverage shall provide for insurance on an “occurrence” basis, or if on a “claims-made” basis, with … The directors are elected by company shareholders to oversee the company's affairs. Health and safety in the workplace, statutory accounting and tax provision, compliance with governmental and regulatory authority requirements; in the modern business world, more and more professional corporate governance is expected of individual company directors. A ship management company, and all of its Board of Directors in person, received such a claim from its shareholders. What is Corporate Insurance and its Benefits? D&O underwriters agreed that although the claim could be defended, there was a significant chance the shareholders would be successful in bringing their action. D&O underwriters were approached and lawyers appointed to defend the allegations against the individual directors. For instance, indemnification may be prohibited for derivative suits or suits resulting from criminal acts. Below, we have enumerated some of these reasons: The following persons are covered under D&O insurance: The persons holding the following positions can be termed as the Directors and Officers of a particular organization: To put it simply, it can be said that the Director and Officers Liability Insurance is applicable to any person who holds a managerial or supervisory position of a company. Stockholders are essentially silent owners of a corporation. Both claims had resulted in significant losses on the balance sheet of the ship management company. A derivative suit is a suit filed by a shareholder on behalf of the organization against a third party. A sum close to USD 1 million had been paid in total. Some pages or content may fail to load. Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana - 122001, IRDAI Web aggregator Registration No. The board appoints officers to manage the company's day-to-day operations. This alleged not only breach of contract but also a “wrongful act” on the part of the responsible director of the consultancy, thereby resulting in financial loss for the oil major. Upon receiving notice from the company, several members of staff consulted an “employment practice lawyer”, and they began a legal action against the company and the individual directors responsible for their dismissal. Some companies have additional positions, such as a chief information officer or a chief human resources officer. Standard trading conditions & indemnity wording, The Claims Review - Issue 43, October 2020, The Claims Review - Issue 41, October 2019, The Claims Review - Issue 39, November 2018, The Claims Review - Issue 37, October 2017, The Claims Review - Issue 35, September 2016, The Claims Review - Issue 33, September 2015, The Claims Review - Issue 31, September 2014, The Claims Review - Issue 29, October 2013, The Claims Review - Issue 28, April 2013 - Getting more from ITIC, The Claims Review - Issue 26, September 2012, The Claims Review - Issue 24, September 2011, The Claims Review - Issue 22, September 2010, The Claims Review - Issue 20, May 2009 - Debt collection special, The Claims Review - Issue 19, January 2009, The Claims Review - Issue 16, January 2007, The Claims Review - Issue 14, November 2005, The Claims Review - Issue 5, January 1997, The Claims Review - Issue 1, October 1993, Sector specific editions of the Claims Review, The Wire, Issue 43, October 2020 - ship management, The Wire, Issue 42, July 2020 - naval architecture, The Wire, Issue 41, May 2020 - insurance brokers, The Wire - Issue 40, June 2019 - cyber security, The Wire - Issue 39, May 2019 - air charter brokers, The Wire - Issue 38, May 2019 - superyachts, The Wire - Issue 37, January 2019 - ship management, The Wire - Issue 36, November 2018 - expert witnesses, The Wire - Issue 35, August 2018 - Japanese translation of the ship management wire, The Wire - Issue 34, May 2018 - superyachts, The Wire - Issue 33, February 2018 - cyber, The Wire - Issue 32, December 2017 - Focus on ship management, The Wire - Issue 31, November 2017 - Focus on naval architecture, The Wire - Issue 30, June 2017 - Focus on marine surveying feat.