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What are the different types of D & O claims?

QuestionsCategory: Directors & Officers Liability InsuranceWhat are the different types of D & O claims?
default avatarPlan Cover Staff asked 2 years ago
1 Answers

Best Answer

default avatarSrinivasan Mahadevan answered 2 years ago
Directors and officers are bound by duty towards various stakeholders — shareholders, employees, creditors, customers, competitors, government and other regulatory bodies. Any breach or non-performance in the duties can result in claims against them by reason of any wrongful act, actual or alleged, in their respective capacities. 
What Types of Claims Fall Under Director and Officer Insurance?
Entities and individuals may sue directors and officers for many different reasons. 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