What Types of Claims Fall Under Director and Officer Insurance?
Entities and individuals may sue directors and officers for many different reasons. The vast variety of claims may account for the frequency of claims. Here is a listing of the common claims that fall under D&O insurance:
- Negligent management
- Inadequate disclosure in financial reports or statements
- Breach of contract
- Antitrust claims
- Regulatory claims
- Breach of fiduciary duty resulting in financial losses or bankruptcy
- Misuse of company funds
- Failure to comply with workplace laws
- Theft of intellectual property and poaching of competitor’s customers
- Lack of corporate governance
Reporting of Claims:
- The first step is to report and notify the claim with the insurer or the broker immediately after the incident.
- The insurer will register the claim and will request for basic information about the claim event along with other documentation requirements.
- Discussion with the insurer and broker on the admissibility of the claim
- A legal counsel is appointed in consultation with the insurer.
- Insurer might appoint a surveyor for the claim and all documents towards the investigation should be provided to the surveyor.
- Claim is settled by the insurer
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