Against a legislative backdrop of increasing shareholder activism, strict compliance requirements for corporate governance, and ever more aggressive regulators, the legal and personal liability of company directors and officers is at an all-time high.
Businesses operating in foreign jurisdictions are required to comply with the legal framework relevant to their overseas operations. Such compliance includes listing and filing requirements, rigorous market disclosure and careful management of their professional relationships with employees, creditors, customers and suppliers.
Directors and officers are personally exposed to unlimited financial liability, and the company and board of directors share the responsibility for ensuring they have the highest possible level of protection.
In response to these evolving challenges, Liberty’s Directors & Officers (D&O) policy wording provides market leading D&O protection. Our wording, combined with our ability to offer limits up to US$25 million, makes Liberty an attractive lead insurer for private, publicly listed and government-owned entities.
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Having corporate Directors & Officers (D&O) Liability cover and Side A cover with the same insurer can leave directors and officers wide open to financial exposure; for example, if the insurer denies liability under the corporate D&O Liability policy, or, worse, becomes insolvent.
When structuring D&O Liability cover, it may make sense to keep Side A cover with an insurer who is not a major player in the corporate D&O programme.
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