Managers can make mistakes and are often personally legally liable as they make tough and complex decisions with huge impacts on the basis of sometimes limited information available.
More and more companies are operating in a multinational environment and their investors, trading partners or operations are located in jurisdictions all over the world which means that directors and officers have to keep in mind not only their markets but also compliance regulations, different government bodies, auditors’ opinions and the latest best practices for corporate governance and risk management in numerous locations.
Liability cover for company managers to protect them from third party claims for wrongful acts which may arise from the decisions and actions taken within the scope of their regular duties.
Such policies cover the personal liability of company directors and officers as individuals (Side A cover).
but also the reimbursement of the insured company in case it has paid the claim of a third party on behalf of its managers in order to protect them (Side B or Company Reimbursement Cover).
Listed stock companies can also obtain cover for claims against the company itself for a wrongful act in connection with the trading of its securities (Side C or Securities Entity Cover).
Note: This is just a summary of the cover usually provided. For full details, please contact any of Tokio Marine Egypt General Takaful offices.