Companies today have to operate within a growing array of complex laws, rules and regulations, which increase the possibility of loss and consequent litigation. Nearly every industry can be affected by suits against the company, management and employees.
Who Can Be Covered?
Directors and officers, including:
- Unrestricted definition of directors or officers covering all types of past, present and future directors and officers
- Managerial and supervisory employees
- All employees for employment related wrongful acts
- Employees as co-defendants
- Retired directors, other than those retired because of disqualification from holding office
- Outside directors who, at the request of the company, serve on an outside entity board
- Spouse, estate, or legal representative of deceased directors
- All approved persons who perform controlled functions
- Any lawyer employed by the company who in their capacity as such must comply with Sarbanes-Oxley Act of 2002
What Constitutes a Claim?
There is a broad definition of types of acts and a wide definition of wrongful act which constitute the basis of a claim, including:
- Breach of trust
- Error
- Omission
- Misstatement
- Misleading statement
- Neglect
- Breach of duty
- Any violation of the Companies Act or any equivalent law, rule or regulation in any other jurisdiction including:
- Written demands, civil and criminal actions and administrative and regulatory proceedings
- Employment related wrongful acts including cover for any breach of employment law
- (common law or statute)
- Whistleblower issues
- Action raised against insured persons in respect of pollution
- Extradition proceedings
- Civil or arbitral proceedings against the company
- Criminal prosecution against the company
- Formal administrative or regulatory proceeding against the company
- Additional catch all of any matter claimed as a result of status as a director or officer of the company