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:
Broad definition of directors or officers covering all types of past, present and future directors and officers
Managerial and supervisory employees
All insured persons 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
Breach of duty (including breach of duty under the Corporate Manslaughter and Homicide Act 2007 or equivalent rule in any other jurisdiction)
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
Action raised against insured persons in respect of pollution