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Directors and Officers Liability Insurance

What is Directors and Officers Liability Insurance?

If you are a director or officers in your business, you are vulnerable and legally responsible for allegations of wrongful acts on your company. Directors & officers liability insurance protects you from third party claims from customers, business partners or shareholders etc.

This allows directors and officers to focus on running the business and concentrate on their job.

What do directors and officers liability insurance cover?

Directors and officers liability can cover the personal liability and financial loss coverage from alleged wrongful acts in the company, as well as the costs to fight these allegations. Such coverage may cover

  • litigation costs from 3rd parties such as shareholders, business partners, vendors on breach of duty or breach of law
  • litigation arising from business activities, equities, and debt initiatives, financial reporting, statutory obligations, and corporate failures.
  • defense legal costs, damages, bail bond, crisis costs, deprivation of asset costs, prosecution costs, public relations expenses
  • losses from civil fines, penalties, and settlements awarded for indemnified claims
  • employment-related claims
  • securities claims
  • extradition proceedings
  • tax contribution issues due to company insolvency and personal liability for tax payable

What do Directors and officers liability insurance not cover?

Do note that intentional illegal or wrongful acts are not covered as the intentions are malicious.

Do I need directors and officers Insurance in Singapore?

Yes, especially in Singapore. The law has changed recently such that directors are no longer separate from the entities of private limited corporations. Third parties can seek legal recourse from directors if they are alleging wrongful acts done by the companies.

Singapore is a hub in Asia Pacific, and has extradition treaties with numerous big trading partners. Legal action can be brought fore to the courts of Singapore against a Singapore registered business.

How much does professional liability insurance cost?

Due to numerous factors involved, the rates are usually not fixed in a single package form and should be customised if possible. This help to ensure you are not paying extra for factors that you may not require too.

Do contact us and we can establish the factors before creating a good customised package with competitive quotes.