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Does D&O insurance cover fines and penalties?

QuestionsCategory: Directors & Officers Liability InsuranceDoes D&O insurance cover fines and penalties?
default avatarPlan Cover Staff asked 2 years ago
1 Answers

Best Answer

default avatarSrinivasan Mahadevan answered 2 years ago
The Director and Officers’ liability insurance is a policy that caters to the directors or officers of a company or business. The directors and officers have varied duties and, responsibilities that help in the company’s running and ethical functioning. If there is any violation in the duty and performance of the high-rank holders, they can get legally charged. In such times, the D&O policy pays for the legal expense incurred due to defense action and other losses. 
In general, civil fines are covered under the D&O liability insurance policies if the courts declare them payable as per local jurisdictions and treat them as insurable in nature. The D&O liability policy has a few exclusions when it comes to covering all the civil penalties imposed for the alleged wrongful actions. For example, the D&O policy will not support payment for fraudulence charges. It is against the defined norms and agreements of the D&O policy and varies with the insurer. 
The ideal way of knowing if the D&O policy supports the penalty or fine you are concerned with is by seeking the assistance of the insurance expert. 
With PlanCover, you can get all the answers to your queries on D&O liability insurance. PlanCover is a renowned insurance broker selling D&O policies to companies. You can get clarifications on every aspect related to liability insurances with their responsive and responsible team. Get in touch with the efficient team of PlanCover and find out the answers before buying the policy.