Directors and Officers Liability Insurance

Protect Your Executives And Board Directors From Risk

Directors and Officers Liability Insurance

What is Directors and Officers Liability Insurance?

For companies in Hong Kong and worldwide, Directors and Officers Liability Insurance (D&O) provides your executives personal liability and financial loss protection from wrongful acts committed – or allegedly committed – in their capacity as corporate officers.

No matter the size of your organisation, this policy protects you from claims made against you by a host of third parties (shareholders, government bodies, employees, creditors, competitors, customers and more). D&O insurance lets you focus on running the company instead of worrying over protracted litigation or fearing a lawsuit.

Do I need Directors and Officers Liability Insurance?

For all companies, whether in Hong Kong or worldwide, Directors and Officers Liability Insurance is needed if you hold a leadership position within a company, regardless of whether your title is partner, director, general manager, officer or something else.

Level of responsibility is a key consideration – if you make the decisions about your company’s protocol or investment, this type of cover could become relevant if things go wrong.

If you answer to shareholders, these parties could launch claims against managing directors if they believe your investment decisions lacked due diligence.

Although a company can legally cover personal liability costs resulting from an executive or senior manager’s activities, indemnification may not apply to every situation. In some cases, the financial liability is the executive’s sole responsibility, and D&O insurance fills these gaps, protecting personal assets.

Even if allegations of wrongful acts connected with company positions are unfounded, defence costs can be devastating, especially for smaller companies. Other legal expenses, such as attendance at investigations into the company’s affairs in the directors or officers’ capacity, should not be underestimated.

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What does Directors and Officers Liability Insurance cover?

Management liability claims can affect all companies, large and small, public and private. And directors and officers and the company and board of directors share the responsibility for ensuring they have the highest possible level of protection.

Directors and Officers Liability Insurance coverage capabilities include:

Defence costs, legal representation expenses, damages, judgements, settlements, bail bond costs, crisis costs, deprivation of asset costs, prosecution costs, public relations expenses
Costs arising from extradition proceedings
Tax contributions where the parent company has become insolvent and there’s personal liability of an insured
Losses incurred against Insured Person for civil fines and penalties

Contact us, and we’ll help you design and implement a D&O policy that suits your business by identifying your corporate and personal exposures to liability. We’ll create a policy incorporating risk mitigation recommendations and the broadest Directors and Officers Liability Insurance cover available, for companies in Hong Kong and worldwide.

Financial Lines Insurance

The business environment is constantly evolving, and so are its risks. That’s why, no matter the size and type of your company, we have the products and solutions to manage it.

Our insurance policies can be arranged to include several related products and packages depending on the professional services your company provides, including: