Recently, there has been a spate of corporate actions that
sends strong vibes of mismanagement, fraud, negligence, dishonesty and selfish
On one hand, shareholders and employees have sought legal
intervention against the actions and motives of company directors for triggering
off spectacular bankruptcies and disastrous takeovers.
On the other hand, environmental protection, attitude towards minorities, sexual harassment and codes of conduct are also becoming major topics of debate between courts and boardroom movers & shakers. Media attention has also abetted the chances of discovery of any mismanagement or wrongful acts. As business firms step closer to globalisation, the chances for their directors facing legal libel increases manifold.
Professionals employed in the corporate sector have to assume a wide vista of responsibilities in keeping with their job requirements. As an individual ascends the corporate ladder, he is entrusted with more and more responsibilities. Responsibilities translate into liabilities the moment they are not fulfilled. For an individual managing a corporate structure, the slightest slip or error in making a decision might result in a severe deficit for the shareholders and owners of the company.
Owing to these circumstances, insurance companies all over the world have introduced liability insurance for directors. All employees who fulfill a specific function within a company are eligible to be covered under the scope of cover provided by Director's Liability insurance.
Company lawyers, secretaries, treasurers, liquidators, auditors - all of these can be insured against public liability thanks to Director's Liability insurance. Insurance policies available in India are underwritten on an all costs covered basis and will provide for courtroom defence costs too. Directors can also insure their office using Office Umbrella insurance policies. All contents of any material value stored and used within the office premises can be insured against major perils and accidents.
The Office Umbrella policy also covers losses initiated by fraud or dishonesty of employees, electronic equipment, cell phones and most of the paraphernalia associated with a modern working environment. Recently, there has been a spate of corporate actions that sends strong vibes of mismanagement, fraud, negligence, dishonesty and selfish motives.