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Directors & Officers
Liability Insurance

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at just ₹10,000 per year* for your business
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d&o insurance

Small Business, Big Protection!

You’re a dedicated SME business owner who has poured heart and soul into your company. One day, a decision made by your Board of Directors comes under scrutiny, and a lawsuit is filed against both the board and you personally as an officer.

Without Directors & Officers Insurance, your personal assets and hard-earned savings could be on the line. But with the right coverage, you can defend yourself and your business without the crippling financial burden.

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    What is D&O liability insurance?

    Directors & Officers (D&O) insurance offers comprehensive protection by covering legal defense expenses and financial damages stemming from allegations and lawsuits involving the Board of Directors and officers within your organisation. With the rising prevalence of D&O claims, individuals in leadership roles face an elevated risk of personal liability.

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    What is D&O liability insurance
    directors and officers insurance cover

    Who is covered?

    The policy offers broad coverage, encompassing a range of individuals within the company, such as:

    • Executive directors
    • Company secretaries
    • Non-executive directors
    • In-house lawyers
    • Shadow directors
    • Risk managers
    • Prospective directors
    • De facto directors
    • Any member of the supervisory or management board
    • Employees in key management roles e.g. CTO, CFO, CMO, CXO

    Who is covered?

    The policy offers broad coverage, encompassing a range of individuals within the company, such as:

    • Executive directors
    • Non-executive directors
    • Shadow directors
    • Prospective directors
    • Any member of the supervisory or management board
    • Company secretaries
    • In-house lawyers
    • Risk managers
    • De facto directors
    • Employees in key management roles e.g. CTO, CFO, CMO, CXO

    It’s crucial to note that the coverage provided by this policy is not tied to individuals’ names but extends to anyone who holds the designated positions of authority (D&Os) within the company throughout the policy period.

    Further, lawful spouses, estates, and legal heirs are also covered.

    We’ve forged partnerships with India’s foremost insurers and the world’s largest AA-rated reinsurers to deliver this important product to companies like yours.

    We’ve forged partnerships with India’s foremost insurers and the world’s largest AA-rated reinsurers to bring this important product to companies like yours.

    Nature of risks that D&Os can get exposed to

    Directors and Officers can be exposed to a variety of risks, including:

    Directors and Officers Insurance

    Lawsuit by Shareholders and Investors

    Shareholders can file lawsuits against D&Os for alleged mismanagement, breach of fiduciary duty, or financial misconduct that may harm the company’s value or their investments.
    Personal Identifiable Information (PII)

    Regulatory Investigations

    Government agencies and statutory bodies like SEBI, ED, SFIO, EOW , RBI etc., may investigate D&O for compliance breach related to GST filing, labour laws, audit, revenue accountings etc., leading to potential legal actions.
    Personal Health Information (PHI)

    Employee Claims

    D&Os can face lawsuits from employees for issues like wrongful termination, discrimination, harassment, or violations of employment laws.
    Personal Health Information (PHI)

    Competitor Litigation

    Rival companies might initiate legal actions against D&Os for alleged unfair competition, intellectual property infringement, or trade secret theft.
    Personal Health Information (PHI)

    Crisis Management

    During crises such as product recall, accidents or scandals D&O may face scrutiny and legal actions citing failure to exercise due care, skill, and diligence.
    Personal Health Information (PHI)

    Cybersecurity Breaches

    In cases of data breaches or cyberattacks, D&Os may face claims related to their oversight of the company’s data security measures.
    Personal Health Information (PHI)

    Mergers and Acquisitions

    D&Os involved in mergers, acquisitions, or other significant corporate transactions may face legal challenges if shareholders or stakeholders believe the process was mishandled.
    Personal Health Information (PHI)

    Creditors' Claims

    Creditors can sue D&Os if they believe that actions taken by the leadership negatively affected the company’s financial standing and their ability to recover debts.
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    The Power of D&O liability Insurance

    An investigation into alleged financial irregularities, such as delayed financial reporting and statutory auditor registration, has been launched against a prominent startup. Additionally, the ED has initiated inquiries into suspected irregularities in the company, casting doubt on the company’s reported figures.

    The presence of a Directors and Officers (D&O) insurance policy has played a pivotal role in safeguarding the financial cost associated with the incident.

    This policy fully covers substantial expenses for retaining legal counsel to defend the director, covering legal representation costs during regulatory inquiries, and even the expenses related to hiring a public relations expert.

    Directors &
    Officers Liability Insurance

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    Why SMEs and Startups Need a Directors & Officers (D&O) Liability Insurance Policy?

    Legal Resources: SMEs and startups lack in-house legal and risk management teams, making it difficult to handle legal issues.
    Financial Vulnerability: SMBs and startups, unlike large companies, can suffer severe financial consequences from legal problems.
    Promoter’s Personal Risk: Promoter-driven businesses risk personal financial losses due to significant losses in the company.
    Talent Attraction: D&O insurance helps attract and retain top talent by offering protection against personal liability.
    Risk Mitigation: All companies face lawsuit risks. Without D&O insurance, leaders may personally bear the defense costs.
    Investor Attraction: D&O policy signals commitment to risk management, making the company more appealing to investors.
    Legal Resources: SMEs and startups lack in-house legal and risk management teams, making it difficult to handle legal issues.
    Financial Vulnerability: SMBs and startups, unlike large companies, can suffer severe financial consequences from legal problems.
    Promoter’s Personal Risk: Promoter-driven businesses risk personal financial losses due to significant losses in the company.
    Talent Attraction: D&O insurance helps attract and retain top talent by offering protection against personal liability.
    Risk Mitigation: All companies face lawsuit risks. Without D&O insurance, leaders may personally bear the defense costs.
    Investor Attraction: D&O policy signals commitment to risk management, making the company more appealing to investors.

    What’s covered?

    • Legal fees or defence costs
    • Out-of-court settlements
    • Investigation costs
    • Bail bond expenses
    • Managing public relations
    • Extradition costs

    What’s not covered?

    • Fraudulent or dishonest acts (e.g., Insider trading)
    • Bodily Injury and property damage
    • Claims related to prior incidents or circumstances
    • Criminal activities (e.g. manslaughter)
    • Fines and penalties that are uninsurable
    • Claims arising from the public offering of securities
    • Legal fees or defence costs
    • Out-of-court settlements
    • Investigation costs
    • Bail bond expenses
    • Managing public relations
    • Extradition costs
    • Fraudulent or dishonest acts (e.g., Insider trading)
    • Exclusion of Bodily Injury and Property Damage
    • Claims related to prior incidents or circumstances
    • Criminal activities (e.g. manslaughter)
    • Fines and penalties that are uninsurable
    • Claims arising from the public offering of securities

    Claims Roadmap

    Notify The Insurer

    1. Notify the Insurer

    If your company faces litigation, receives a request for monetary or non-monetary relief, or is served a show cause notice or investigation by a regulatory body against its directors or officers, promptly inform the insurer.
    Thorough Review

    2. Expert Review

    The insurer will conduct a thorough review of the incident, gathering a detailed chronology of events and examining relevant court documents or received letters.
    Legal Counsel Engagement

    3. Legal Counsel Engagement

    Your company can engage legal counsel for the defence, with the mutual agreement of the insurer. The insurer will then reimburse the legal counsel’s expenses as agreed upon.
    This streamlined process ensures a swift and efficient response to protect your company and its leadership in times of need.
    Acknowledgment and Co-ordination

    1. Notify the Insurer

    If your company faces litigation, receives a request for monetary or non-monetary relief, or is served a show cause notice or investigation by a regulatory body against its directors or officers, promptly inform the insurer.
    Thorough Review

    2. Expert Review

    The insurer will conduct a thorough review of the incident, gathering a detailed chronology of events and examining relevant court documents or received letters.
    Legal Counsel Engagement

    3. Legal Counsel Engagement

    Your company can engage legal counsel for the defence, with the mutual agreement of the insurer. The insurer will then reimburse the legal counsel’s expenses as agreed upon.

    Why Onsurity

    Custom Solutions

    Custom Solutions

    We create plans that fit your needs.

    Personal Touch

    Personal Touch

    We combine digital ease with personalized service.

    Great Risk Management

    Great Risk Management

    We’re backed by experts who understand D&O risks.

    Custom Solutions

    Custom Solutions

    We create plans that fit your needs.

    Personal Touch

    Personal Touch

    We combine digital ease with personalized service.

    Risk Management

    Great Risk Management

    We’re backed by experts who understand D&O risks.

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