Directors & Officers Insurance: Key Features

Claims Made Policy

Regardless of when the director committed a wrongful act, any loss from
those actions may not become apparent until much later. Therefore, it is the
policy of insurance in force at the time the claim is made which would provide
cover.

Wrongful Act

The main intention of the D&O policy is to provide cover for the wrongful
actions of a director or officer in the running of the company. This includes:

	Breach of trust
	Breach of warranty
	Neglect
	Error
	Omission
	Misstatement
	Misleading Statement

Limit of Indemnity

	Aggregate
	Costs Inclusive

Costs

	Legal costs and expenses
	Regulatory body prosecution costs
	Loss of documents - replacement

Additional persons Insured

	Legal representatives of directors and officers in the event of death, insolvency or bankruptcy
	Future directors - wrongful acts committed after appointment
	Former directors - wrongful acts committed prior to cessation
	Marital Estates - Lawful Spouse

Discovery Clause

Where insurers decline to renew a D&O policy, optional cover is available at additional premium up to 90 days after expiry where the company may notify any claims - but only in respect of wrongful acts committed by any director or officer during the original period of insurance, and that application to the Insurer to exercise this right is made within 10 days of the expiry of the policy.

Main Exceptions

	Dishonesty, Fraud or Malicious Conduct
	Bodily Injury / Property Damage
	Fines / Penalties / Damages
	Pollution
	Date Recognition / Year 2000
	The first £100 of a claim

Other Conditions

	UK Jurisdiction
	Claims Notification
	Conduct of Claim

The above are summaries of our understanding of the responsibilities of Directors and Officers of a Limited Company. Detailed information of legal matters should be referred to a solicitor and our D&O policy document for full contract terms.