Also known as: Directors and Officers Liability Policy
Cover for the personal liability of directors and senior officers arising from decisions made in their corporate role.
Directors and Officers Liability protects the personal assets of directors and senior management against claims arising from their decisions and conduct in office. Under the Companies Act 2013, directors in India carry meaningful personal liability, and claims can arise from shareholders, regulators, employees, creditors or customers. Because liability attaches personally, D&O is one of the few covers that protects individuals rather than the organisation.
Private and public limited companies, particularly those with external investors, institutional shareholders, regulated operations or independent directors. Increasingly required by investors as a condition of funding, and by independent directors as a condition of accepting appointment. Start-ups raising institutional capital commonly encounter this requirement at Series A.
Limits typically range from one crore for smaller private companies to fifty crore or more for listed entities. Sizing reflects company size, sector, investor profile, regulatory exposure and whether the business operates internationally. Defence costs alone can be substantial even where a claim ultimately fails.
The difference between a policy that responds and one that disappoints usually sits in details that are easy to overlook at purchase.
Not sure which combination fits your business?
Speak to an AdviserDirectors, officers and typically senior management. Cover extends to past, present and future individuals in those roles during the policy period.
Yes. Claims from shareholders, regulators, employees and creditors apply equally to private companies, and directors carry personal liability regardless of listing status.
Defence costs are typically covered until fraud is established by judgment or admission, at which point cover falls away and costs may be recoverable by the insurer.
Cover continuing after a director leaves or the company is sold, protecting against claims made later in respect of earlier conduct. Without it, former directors can be exposed years afterwards.
Institutional investors and venture funds frequently require D&O as a condition of investment, particularly where they appoint a board representative.
Most modern policies cover investigation costs, often from the point of a formal notice rather than waiting for a claim. The trigger point varies between wordings.