This policy covers directors and officers of a company in case of legal suits brought against them individually for their violation of their official duties or statutory laws.
Directors and Officers Liability
What is Directors and Officers Liability?
- Section A – Indemnity to individual directors for legal suits filed against them
- Section B – Company reimbursement ( Company pays for legal suits for the sued director hence the company seeks reimbursement)
- Section C – Securities (Applicable to companies that trade in the stock exchange markets & financial instruments i.e bonds)
FAQ
How can one arrange cover for Directors and officers liability insurance?
Cover can be issued on the following basis.
- Section A – Indemnity to individual directors for legal suits filed against them.
- Section B – Company reimbursement (Company pays for legal suits for the sued director hence the company seeks reimbursement)
- Section C – Securities (Applicable to companies that trade in the stock exchange markets & financial instruments i.e bonds)
Which institutions Qualify for this cover?
- Companies domiciled in Kenya (but company might be operating abroad)
- Companies (and their subsidiaries) which are not listed on any stock exchange
- Companies which have been in continuous operation for at least three years
- Companies which are not a financial institution, a pharmaceutical, a bio‐technology
- or an information technology/services company.
- Companies which are not aware of any past claims against the directors or officers
- within the last 5 years
- Companies which are not aware of any circumstances that could give rise to a claim
