Directors and Officers Liability

Reliance General Insurance

Reliance Directors’ and Officers’ Liability Policy Features

Directors and officers of companies are accountable to all stakeholders of the company, including the shareholders, the employees, and the general public. One wrong move by them can result in legal hassles. The possible consequences of various allegations such as above may lead to either civil or criminal action being brought against directors and officers. The Reliance Directors and Officers’ Liability Insurance Policy provides cover against different civil and criminal actions that directors and officers might be exposed to.

Key Benefits:

Cover against legal risks that directors and officers might be exposed to
Liabilities arising out of directorship in subsidiary companies covered
Outside directorship can also be covered
Extension available to cover crisis communication
Court attendance costs and pollution defense costs are also available as extensions
Fines and penalties can also be covered

Reliance Directors’ and Officers’ Liability Policy Coverage

Coverage applies only to claims made against the insured during the period of insurance, irrespective of when the wrongful act occurred.

The Policy offers three covers:

For the Directors and Officers: Pays on the behalf of the directors and officers all loss arising out of a claim for wrongful act for which coverage applies under this Policy and for which the Directors and Officers are not entitled to indemnification from the Company.

For the Company: Pays on the behalf of the Company all loss arising out of a claim for wrongful act for which coverage applies under this Policy and for which the Company is permitted or required by law to grant indemnification to the directors and officers.

For Advancement of Legal Costs: Covers the legal costs reasonably incurred by the directors/officers in defending any claim against them before civil and criminal courts in respect of a Wrongful Act for which coverage applies under this Policy.
For Regulatory Proceedings: Pays the legal costs reasonably incurred by directors/officers in respect of their attendance at regulatory proceedings.

Extensions Available

The following extensions are available to cover:

Extended Discovery Period
Auto Acquisition of Subsidiaries
Outside Directorships
Crisis Communication Cover
Court Attendance Costs
Pollution Defense Costs
Director Versus Director
Allocation of Legal Costs
Fines and Penalties

Reliance Directors’ and Officers’ Liability Policy Exclusions

This Policy does not apply to claims resulting from:

Circumstances notified under a prior insurance policy
Bodily injury, sickness, disease, death, damage, or destruction of tangible property including loss of use
Bodily injury, sickness, disease, death, damage, or destruction resulting from the hazardous properties of radioactive or nuclear material or of any radioactive or nuclear facility
Nuclear or radioactive material threat
Deliberate, dishonest or fraudulent acts, or omission or profit or advantage wrongfully gained by the directors/officers
Pollution claims, intentional or accidental, including remedial measures (except to the extent any Claim is brought derivatively by a security holder of the Company who, when such Claim is first made, is acting independently of the directors and officers and the Company)
Payment of remuneration to the directors and officers without the required, previous approvals under the existing laws
The directors and officers or the Company carrying out, or failing to carry out, professional services to a third party or any act, error or omission relating thereto
Directors/Officers suing each other, unless such claim is brought by or against a former director or officer, or is in respect of an employment dispute