All D&O policies are written on a “claims-made” basis, which means that the policy responds to claims made against directors during the policy period and not when the underlying wrongful act occurred.
Introduction
When a company enters insolvency, its directors face a particularly vulnerable position as the company is no longer capable of indemnifying them, while new stakeholders, such as resolution professionals, liquidators, and creditors, subject their past decisions to scrutiny. It is in this context, at the intersection of corporate failure and potential personal liability, that directors and officers (D&O) insurance assumes significant importance. In India, this intersection has sharpened since the enactment of the Insolvency…