Directors' and Officers' Liability Insurance

Scope of Cover

  • Designed to indemnity the insured (a corporation or insured person) for the amount that it/he becomes legally bound to pay for claims made against it/him for wrongful act(s) committed during the period of insurance
  • There are two sections to a D&O Insurance policy:
    • Directors' and Officers' cover (indemnifies the individual director or officer against liability arising from any negligence, default, breach of duty or breach of trust (wrongful act) in relation to the company)
    • Company Reimbursement cover (indemnifies the company against the claim payments and defence costs which it is legally obligated and permitted to reimburse its directors or officers for any claims made against them arising out of their wrongful acts)
  • People who are eligible for this policy, i.e. to be accepted as the insured person, include:
    • Past, present or future director
    • Secretary, officer of the corporation
    • Any natural person, who by virture of any applicable legislation or law, is deemed to be a director or officer of the corporation issued on a "claims made basis"
© 2012 Cambodian National Insurance Company (CAMINCO)