The Directors and Officers Insurance generally cover the employment practices liabilities that form a large part of these policies and mostly covers discrimination and harassment claims. If any employee decides to file a case the director or the officer of a company for harassing them regarding work or discriminating between seniors or juniors, men or women or regarding any other thing in the office, the director can be held liable to pay a huge amount of money as a claim. This insurance policy also covers the legislative breaches like the companies acts, data protection act, insolvency act, health and safety act etc.
This cover also protects the directors and officers against any disputes that may arise from any kind of acquisitions and merger activities and any alleged mismanagement regarding the financial matters of the company. Also it gives them cover in case they act contrary to their company’s memorandum articles of association and even in cases where the director or the officer has made any slanderous statement. These are just the few situations where the Directors Insurance may prove to be very helpful, however, there are many more situations where you can be covered, it is always a good idea to consult a good insurance agent and read all the inclusions and exclusions carefully before buying the insurance.
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