Professional Liability Insurance For Directors & Officers
Why TRUST Professional Liability for Directors and Officers
Who Is This Insurance For?
Aimed at Executive Board members or not. Corporate officials e.g. General Manager, Manager, Internal Auditor, Compliance Officer etc.
The basic coverage of the policy includes the personal legal responsibility of the Company's Directors and Officers for the payment of damages to natural and / or legal persons who have suffered financial loss as a result of wrongful acts and / or omissions in their capacity as Directors and Officers.
It also covers the loss of the company itself to pay compensation to physical and / or legal persons who have suffered financial loss as a result of wrongful acts and / or omissions made by their Directors and Officers in their capacity.
What are the requirements for this policy?
- To provide all the information required in the insurance policy or any other Form in full clarity
- Pay premiums according to the payment plan as listed on your insurance policy table
- Take all necessary measures to avoid bodily harm, loss or damage and comply with the provisions of the legislation
- Notify the company in case of change that will increase the level of risk
- Refer to the Company immediately and provide them with full details of the claim in writing
- Take reasonable precautions to prevent or reduce the claim extension
- Non-acceptance of liability, offer, promise or payment without the written consent of the Company
- Comply with the terms of the insurance policy
Are there any cover limitations in the coverage?
The deductible amount is the amount or percentage that is not covered and/or deducted from the amount for each claim separately.
There is a detailed list of coverage limitations in the insurance policy.
When does my coverage start and when it ends?
The start and end of the coverage is determined in the Table of the Insurance Contract. The duration of the insurance is 12 months, unless another insurance period is agreed between the two parties.
What is Directors & Officers Insurance?
Directors and officers liability insurance is a type of liability insurance aimed at the directors and officers of a corporation. Directors, officers, corporate executives and other decision-makers have increased responsibilities toward investors, the public, regulators and the company’s employees. Thus, if something goes wrong, such as omissions, wrong management decisions, misstatements or breach of duty, those people can be held liable. If they are insured with comprehensive D&O Insurance, they won’t need to pay from their pockets legal costs and compensations to third-parties for covered incidents, or to the organization itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. Such coverage can extend to defense costs arising from criminal and regulatory investigations or trials as well; in fact, often civil and criminal actions are brought against directors and officers simultaneously. Intentional illegal acts, however, are typically not covered under D&O policies.
Is Directors & Officers Insurance compulsory in Cyprus?
Directors and officers insurance is not compulsory in Cyprus. However, it is a must-have insurance as those professionals can be sued for wrongful acts, negligence or malpractice. Coverage can extend to include defense costs from regulatory or criminal investigations or trials. Intentionally illegal acts are typically not covered under professional liability policies.
Do I need a Director & Officers Liability Insurance?
Even though D&O Liability Insurance is not required for all businesses, corporations with a board of directors could be protected from significant costs if someone raises legal claims against their directors or officers.