What Does the Policy Cover?
D&O cover provides the funds to defend proceedings (including extradition proceedings) and investigation for wrongful or criminal acts and omissions in the performance of the functions for which they are retained by their organisation. The policy does this by paying representation and defence costs, judgements and settlements.
It also protects directors by paying legal representation fees for formal investigative inquiries into their conduct by governmental and regulatory bodies. Some things such as fines are not covered by the policy.
Actions and investigations can come from a variety of sources. The most common being:
- Shareholders & Stakeholders
- Customers & Suppliers
- Creditors
- Employees
- Regulators Eg. HSE, OFT, HMRC, FSA, Trading Standards