Directors and officers liability insurance
Directors and officers insurance Cyprus Sometimes known as D&O insurance, directors and officers insurance protects managers and executives of a company for committed or alleged wrongful acts in managing a company. This insurance product, which commonly protects the company as well as individuals, covers legal fees, settlements, and other costs associated with D&O claims. Directors and officers insurance is an indispensable insurance product in Cyprus, and we aim to help you find the best and most affordable contract in Cyprus throughout this guide.
Directors & Officers Liability insurance (also referred to as D&O insurance) offers essential coverage for companies and non-profit organisations of all sizes against legal claims made by clients, investors, employees and other parties. Here are some of the most common questions about it answered. 1.What exactly is D&O Insurance? Directors & Officers Insurance covers legal liabilities and assets in case the directors and officers in a company are sued because of alleged or actual wrongful acts committed within their positions.
The Directors and Officers Liability Insurance does not only apply to state-owned companies. The owners of family businesses are sometimes under the false impression that they do not need coverage by this insurance. Of course, once they are forced to deal with a claim and bear the defense expenses; or even worse, when they have to pay compensations or a settlement amount, they quickly change their mind. The directors of private companies may be sued by a number of claimants for various reasons.
The rapid expansion of the Directors and Officers Liability insurance, known as D&O, in the political world is due to various factors including: The unlimited liability of the company’s officers The influence of the European Union Directives The formal and strict environment of corporate governance The modern views attributing liability to the companies’ officers and seeking more transparency in the accounts of companies The globalization and the wide publicity of failures and company scandals.
The Insurance Covers under this policy are afforded for Claims first made against an Insured during the Policy Period and reported to the Insurer as required by this policy. In consideration of the payment of the premium the Policyholder and the Insurer agree as follows: 1.1 Management Liability The Insurer will: pay to or on behalf of each Insured Person any Loss except to the extent that the Insured Person has been indemnified by the Company for the Loss reimburse the Company for any Loss for which it has indemnified an Insured Person.
Limit of Liability The total amount payable by the Insurer under this policy shall not exceed the Limit of Liability where the Insurer’s liability is excess of the Limit of Liability. The Insurer shall have no liability in excess of all such limits, irrespective of the number of Insureds or amount of any Loss. Each Sublimit of Liability specified in the Schedule is the maximum the Insurer shall pay for the cover to which it applies and is part of the Limit of Liability.
Surge of Lawsuits According to the advisory company Towers Watson & Co during the decade 2001 – 2011 in USA the 69% of the public traded companies and the 21% of the private companies have faced a shareholder’s case suit. In Cyprus, the financial crisis of 2013 created inevitably favorable conditions for the upsurge of lawsuits. Pointedly, the most renowned of these conditions are: The commitment for social justice instigates government prosecutors to the intensification of investigations for the disclosure of scandals and wrongful acts.