A Director or an Officer can be held personally responsible for alleged breach of duty, negligence etc., arising out of discharge of their official duties. This policy provides cover for the personal liability of Directors and Officers arising due to wrongful acts in their managerial capacity. Defense costs are also covered and are payable in advance of final judgment. This policy provides protection for claims brought against directors, officers and employees for actual or alleged breach of duty, neglect, misstatements or errors in their managerial capacity.
This type of liability falls upon the concerned director or officer as a personal liability and not as a more general corporate liability.
Unless adequately covered, an individual prone to this exposure can stand to lose his personal assets.
