Who this cover is for
Publicly listed companies, funded startups, private enterprise directors, and non-executive independent board members.
Coverage scope
Policy scope is governed by insurer terms, endorsements, and policy schedules. Common provisions include:
Side A: Personal Asset Protection
Direct coverage for individual directors when the company is legally or financially unable to indemnify them.
Side B: Company Reimbursement
Reimburses the corporation after it indemnifies its executives in defending claims.
Side C: Entity Securities Cover
Covers the corporate entity itself against securities and shareholder lawsuits (standard for listed companies).
Regulatory Inquiries & Defense Expenses
Covers legal costs responding to investigations by SEBI, MCA, ED, or other statutory authorities.
Key limitations and exclusions
Every insurance contract outlines specific conditions, waiting periods, and deductibles to review before policy inception:
Deliberate Fraud & Personal Gain
Acts of proven intentional fraud, dishonesty, or illegal personal profit confirmed by court judgment are strictly excluded.
Prior Litigation & Pending Actions
Lawsuits initiated or known prior to the policy inception date are excluded under warranty.
Insured vs. Insured (US Jurisdiction)
Lawsuits brought by one director against another in US jurisdictions carry specific restrictions without board approval.
How Sanghvi Consultancy assists you
With 45+ years of insurance experience in Navrangpura, Ahmedabad, Sanghvi Consultancy provides personal policy guidance:
- Reviewing company Articles of Association (AoA) to align corporate indemnification clauses.
- Structuring standalone Side A excess covers to guarantee individual board member protection.
- Ensuring run-off cover (extended reporting periods) for retiring or resigning directors.
Frequently asked questions
Why do independent directors insist on D&O coverage before joining boards?
Independent directors face personal financial liability for company decisions they participate in. A robust D&O policy safeguards their personal homes and life savings from corporate litigation.
What is run-off (tail) cover in D&O?
Run-off cover provides an extended reporting window (typically 1 to 7 years) covering claims arising from acts committed before a merger, acquisition, or director resignation.
Discuss your policy with an advisor.
Get clear answers on policy terms, insurer waiting periods, and claim support without aggressive sales calls.