Directors & Officers Insurance

What is D&O insurance?

Management liability claims affect all companies, large and small, public and private. At ACE, we have developed a suite of Directors & Officers (D&O) policies for a variety of organizations. D&O insurance provides personal protection for the board of directors and management against any financial loss arising from the potential exposures associated with managing or supervising a company (whether private or public listed).

Why D&O insurance is critical?

Company directors and officers are directly and personally responsible for a broad spectrum of issues connected with their company positions. Within these arenas, they may be sued by a wide range of third parties – shareholders, government bodies, employees, creditors, competitors, customers and more.

Even if allegations are unfounded, defence costs can be devastating, especially for smaller companies. Other legal costs, such as attendance at investigations into the affairs of the company in the directors or officers capacity of the company, should not be underestimated. A senior manager may be held personally liable for the actions or inactions of others.

Therefore, it is important for directors and officers to have adequate D&O insurance as a safety net to cover claims made against them. With D&O insurance, they can focus on managing the company rather than managing protracted litigation or fearing a lawsuit.

ACE elite V D&O policy: What is covered?

The ACE elite V D&O policy is a new and enhanced policy for directors and officers of large and/or listed companies. It provides coverage for directors or officers of a company for claims arising from allegations of wrongful acts while acting in their capacity as a director or officer. The covered loss amount under the policy includes:

Defence costs, legal representation expenses, damages, judgments, settlements, bail bond costs, crisis costs, deprivation of asset costs, prosecution costs, public relations expenses
Costs arising from extradition proceedings
Tax contributions where the parent company has become insolvent and there is personal liability of an insured
Losses incurred for civil fines and penalties

In addition, the policy provides distinctive coverage enhancements which are market-leading. Watch this video for more information on what’s new in the policy:

Multinational Clients

Peace of mind for multinational clients

The ACE elite V D&O policy has also been developed to ensure that our clients’ multinational policy requirements are managed in an efficient manner. Through ACE Worldview®, our award-winning platform, we are able to efficiently and effectively manage the placement of complex multinational programs. ACE Worldview® is a web-based portal that provides access to ACE’s systems and expertise, all on one easy-to-use application. It is unique in the industry and is exclusive to ACE.

In addition, multinational companies can benefit from ACE’s global network and D&O claims-handling expertise. With offices in over 50 countries, we have local experts and facilities for policy issuance and proof of cover, claims handling and risk management services. Our dedicated team of claims specialists will coordinate multinational claims across the ACE network and serve as a single point of contact.

Documents for Corporate Clients:

Small and Private Companies

Why small and private companies need D&O insurance?

Many relate management liability claims with the front page headlines of large and public companies, however, there is a multitude of claims filed against directors and officers of private companies every year. In addition, in closely-held private companies, the owners’ personal assets may be tied to the financial well-being of the company, making D&O liability claims even more crippling.

Proposal Forms for SMEs or Private Entities: