This is a PPT helpful for senior employees like board members, Directors and officers in supervisory capacity.

1. Directors & Officers Insurance – Why
Every Senior Professional Needs This

2. Are You A Senior Professional or Inspires to be One?
You need D&O Policy.
D&O liability insurance is meant to protect directors and
officers from personal losses if they are sued for something
that took place while at work. It also can cover legal fees and
other costs the company may incur as a result of such a suit.
Ex – A shareholder alleged a senior director of a company
that he has favored third party vendors and costed heavily
on revenue. He sued the senior director and even the
director’s personal assets are in danger. If the company or
Director has D&O, his personal assets can be saved.

3. Types of D&O Policy –
Side A coverage is designed to protect directors and officers of a company who can't afford
or don't want to pay for indemnification. This could happen if the company has gone
bankrupt, for example. With Side A coverage, the individual officer is insured - it's their
personal assets that are at risk.
Side B coverage is a type of insurance that protects corporate directors and officers when
the company does not offer indemnification. In this case, the policy will reimburse the
company for its legal costs. Under Side B coverage, the company is the one being insured -
meaning its assets are at risk and not those of the directors or officers.
Side C coverage provides coverage for the corporate entity itself. With this extra protection,
there is liability against the company's assets as well as liabilities against officers, directors
and employees of the company.

4. Is D&O Insurance Even Good for Small Businesses?
Small businesses are not exempt from costly lawsuits. It is easy to think that only
disgruntled shareholders can bring on lawsuits and fines. However, while they don't seem
as important, the most threatening suits come from customers, vendors, and other third
parties.
Compared to larger companies, smaller businesses might be particularly vulnerable to a
damaging lawsuit. This is due to the fact that they typically don't have the financial muscle
that larger companies have.

5. What is covered in D&O insurance?
D&O insurance is typically a protection plan for legal fees and settlements
when the insured becomes liable. Common allegations that are covered
include breaches of fiduciary duty, failure to comply with regulations, lack of
corporate governance, creditor claims, and reporting errors.

6. D&O Insurance – Special Considerations
• Depending on the type of organization, a D&O policy will take one of several different forms. For
most organizations, the policy is purchased by the organization as a group rather than by each
individual.
• If a company fails to disclose important information or willfully provides inaccurate information,
the insurer may avoid payment due to misrepresentation.
• In some jurisdictions, the severability clause may be ineffective. This provision is intended to
protect against misconduct by one insured affecting insurance for other insureds.
• Policies generally ensure against many different risks, but make it clear that fraud is excluded.
Most policies also have "insured vs. insured" clauses, which means no claim is paid if a director or
officer sues the company. This prevents the company from profiting from deceit or conspiracy.

7. • Why Bimakavach?
• You can get the best recommendation on BimaKavach in 5 minutes.
• You get the best premium options
• Claim settlement support
• You can manage the entire policy online
• For more details on D&O Policy on BimaKavach, click here