Aim
Provides financial protection for the directors and officers in the event they are sued in conjunction with the performance of their duties as they relate to the company against claims from:
- Employee discrimination or unfair employment practices
- Violation of the anti-trust laws or unfair methods of competition
- Violation of a loan covenant
- Exorbitant dividend payments or profit sharing contributions which were made by the Company
- Improper loans made to Directors or Officers
Annual Policy Basis
Market
Only limited insurers are willing to underwrite due to complexity at high cost. The premium offer is greatly subject to the risk exposure of industry to the claims, its past record, internal control and reputation of the Company.
Remarks:
There are many conditions, exclusions and warranties that can be applied for these policies. It is therefore important that you discuss with your insurance adviser any that are applicable to your policy.
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