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what is commercial d&o insurance?

QuestionsCategory: Directors & Officers Liability Insurancewhat is commercial d&o insurance?
default avatarPlan Cover Staff asked 3 years ago
1 Answers

Best Answer

default avatarSrinivasan Mahadevan answered 3 years ago
Directors and officers can mitigate the risk of personal liabilities on them through various safeguards. But, the most ideal, and cost-effective mechanism is they obtain the “Directors and Officers Liability” insurance. This will help the directors to safeguard themselves in case of any claim arising from any third party due to their bonafide actions in the company.
In the wake of various corporate scams and initiation of legal proceedings it becomes very important for the directors to understand their duties and liabilities as a director in Indian regulatory framework.
Directors and Officers (D&O) insurance pays for defense costs and financial losses resulting from lawsuit arising due to any actual or alleged misrepresentation, misstatement, misleading statement, error, omission, defamation, negligence, breach of warranty of authority or breach of duty means