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Directors and Officers Liability: When an insurance policy becomes a recruitment tool
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Overview
Risk Managers' increasing awareness of their management liabilities
Administrators, managers and directors of any company, regardless of its size or activities, carry significant responsibilities in relation to the way they conduct themselves and justify the trust placed in them. This may result in claims against them for actual or alleged breach of duty, neglect, misstatements, errors and omissions.
Taking the pain out of investigation
There is a growing number of governing bodies or authorities who can investigate a company and today, more attention is being focused on smaller companies. Even if an individual is not yet personally under investigation, immediate expert legal guidance can help and perhaps, better manage the situation.
Shared responsibility
As directors and managers are jointly and severally liable, an error on the part of one can have financial and personal consequences for the others, who may have acted with propriety. Strong cover, that ring-fences the cover individuals can receive, can help build the confidence required to work together.
Challenging Regulatory Environment
In Malaysia's increasingly litigious business environment, companies and their directors and officers are subjected to more onerous duties and responsibilities, and face a growing risk of being the target of legal action as a result of the management and business decisions they take.
Increased supervision from the regulators and government authorities and potential litigation from breaches of the Securities and Futures have motivated directors and officers to take a more active interest in their company's affairs.
In spite of this exposure, a significant number of directors and officers do not have adequate management liability insurance in place.
Directors and Officers Liability, the best possible defence
Investigations and court cases are time consuming and very expensive. Directors and Officers (D&O) insurance cover from AIG assures that our clients will have the highest quality legal representation and assistance from the first moment that an action commences. This is our best-ever suite of management liability insurance solutions, designed from scratch to meet the needs of our business partners in Asia.
Who is it for?
Public and private companies, partnerships and not for profit entities.
What is covered & Product Details
Customised for medium to large size and/or listed companies.
Market Leading Coverage:
- No proposal form required at renewal
- Automatic Renewal Option
- "Difference in Conditions" cover for the previous policy. In the event of a claim, if the previous policy has a broader coverage aspect than DragonshieldTM, terms and conditions of the previous policy will apply.
- Global Liberalisation - "Difference in Conditions" cover where local AIG policy provides better coverage.
- Elective Side A Reinstatement option to purchase a Side A reinstatement of the limit a Claim is reported.
- Investigation Costs for Derivative Demands cover for investigation costs incurred by the company where a derivative demand is served by shareholders
- No Pollution Exclusion (subject to individual risk profile)
A standalone policy that serves to protect companies, directors, and officers from claims arising from a company’s capital raising.
In any initial public offering or private placement, errors or omissions in a prospectus, offers information statement or profile statement can put the issuing organisation and the directors and officers involved, at risk. They should be protected against damages awarded against or settlements negotiated with the insured, including costs of defending such suits, legal costs and expenses awarded.
Small and Medium Size Enterprises
Coverage Highlights:
PrivateEdge reimburses the Company, its directors or officers for the loss resulting from any claim alleging a wrongful act. The coverage highlights are as follows:
Management and Corporate Liability Cover
- Protection for company (Sub – limited to 20% of the Policy Limit) and natural persons
- Defence costs relating to breach of contract claims
- Indentity Fraud coverage for the Company when any party other than the employee of the insured Company fraudulently represents the insured Company
- Crisis event - public relations consultation
- Additional indemnity limits for board of directors
Extensions:
- Entity and Individual Investigation costs coverage
- Public Relation expenses for Corporate Manslaughter
- Bodily injury and property damage defence costs
- Emergency costs - coverage incurred before written approval is obtained from the Insurer if Insurer's consent cannot reasonably be obtained
- Civil fines and penalties where insurable by law
- 90 days free discovery period
- Lifetime discovery period for retired managers
- Extradition costs
- Asset and Liberty Cost ensures timely defence when an asset is confiscated or the liberty of the director or officer is restricted
- Public relations expenses other than Crisis Event expenses
- Court attendance allowance
- Automatic cover for new subsidiaries
- Continuous cover provision - provides cover for claims not notified prior to commencement of renewed policy period (thereby providing incentive for renewal)
- Tax Liability
- Data Protection Liability
- Optional Extension for Entity Employment Practice Liability Cover
Indemnity Limits:
A quotation can be provided to clients with total asset size less than RM50m on site with the completion of the Quick Application Form. Higher limit of liability options and / or clients with total asset size more than RM50m are also available on request.
Not-For-Profit Entities, Association
Coverage Highlights:
PrivateEdge (Not-For-Profit) provides a comprehensive coverage for Not-For-Profit entities, reimburses the Not-For-Profit Entities, its directors or officers, or committee members for the loss resulting from any claim alleging a wrongful act. The coverage highlights are as follows:
Management and Corporate Liability
- Protection for the Entities (Sub – limited to 20% of the Policy Limit) and natural persons
- Defence costs relating to breach of contract claims
- Indentity Fraud coverage for the Company when any party other than the employee of the insured Company fraudulently represents the insured Company
- Crisis event - public relations consultation
- Additional indemnity limits for board of directors
Professional Liability Cover
- Civil Liability
- Intellectual Property
- Defamation
- Fraud / Dishonesty
- Loss of Document
Extensions
- Entity and Individual Investigation costs coverage
- Public Relation expenses for Corporate Manslaughter
- Bodily injury and property damage defence costs
- Emergency costs - coverage incurred before written approval is obtained from the Insurer if Insurer's consent cannot reasonably be obtained
- Civil fines and penalties where insurable by law
- 90 days free discovery period
- Lifetime discovery period for retired managers
- Extradition costs
- Tax Status Cost Cover
- Asset and Liberty Cost ensures timely defence when an asset is confiscated or the liberty of the director or officer is restricted
- Public relations expenses other than Crisis Event expenses
- Court attendance allowance
- Automatic cover for new subsidiaries
- Continuous cover provision - provides cover for claims not notified prior to commencement of renewed policy period (thereby providing incentive for renewal)
- Optional Extension for Entity Employment Practice Liability Cover
Indemnity Limits:
A quotation can be provided to clients with total asset size less than RM50m on site with the completion of the Quick Application Form. Higher limit of liability options and / or clients with total asset size more than RM50m are also available on request.