A- Directors and Officers Liability normally provides indemnity for directors and officers against personal liability arising from claims made against them. These can be from any wrongful act committed or alleged to have been committed by them in their capacities as directors and officers of the company and where there is no reimbursement by the company.
B- Company Reimbursement Section provides indemnity to the company in respect of any payment the company makes to its directors or officers, against whom a legal action has been brought, as long as the payment is legal.
C- Corporate Liability Cover – This is generally an optional cover protecting the company in respect of defence costs and certain liabilities arising out of civil and criminal actions. It can be extended to include employment practices claims such as unfair dismissal, race, sex, and age and disability discrimination.
(As employment practices claims are usually brought solely against the company, rather than the directors or officers, cover can be very limited unless there is an employment practices’ extension.)
Entity cover can sometimes be purchased as an extension in respect of employment practice claims; this then would provide cover for the company. However, most companies seeking this cover would purchase specific employment practices liability and legal expenses cover to ensure that they are adequately protected.