Personal D&O Insurance

Many Singapore company directors worry that their company does not buy or renew D&O Liability insurance, that the coverage is not adequate, or that the policy may not be activated to protect them when the need arises. For directors who resign or retire.

Who Needs Personal D&O Insurance?
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Personal D&O Insurance – Frequently Asked Questions

Q. Who can apply?
The policy is available exclusively to members of the SID.

Q. I am not an SID member. How can I apply?
You can obtain a provisional policy, which will be converted into coverage on confirmation of your successful application to become a SID member.

Q. What is the cost?
A fixed annual premium of S$1,000 plus GST is payable. Companies are entitled to pay this premium on behalf of their directors.

Q. What is the policy limit?

The limit of indemnity is S$1 million in the aggregate.

Q. What is the excess amount?
No deductible applies.

Q. What is the period of cover?
Cover is based on a period of insurance of 12 months. All policies have a common due date of 1 May.

Q. What is the coverage?
Coverage is based on the Allianz Platinum D&O Insurance Policy wording amended to provide cover to an individual director.

Q. What types of claims can arise?
Typical claims that can be brought against directors and officers include:

  • Claims that directors failed to inform shareholders of the correct financial position of the company.
  • Claims that directors have breached a confidentiality requirement by unintentionally releasing private company information.
  • Claims by competitors that directors have breached copyright or have illegally copied a financial product or strategy.
  • Claims that directors have defamed a competitor.
  • Claims that directors failed to properly supervise the activities of the company. Such claims can arise when a company is found to have failed to comply with regulations regarding licensing, or compliance with securities trading laws.
  • Claims that directors had breached employment laws regarding wrongful dismissal, harassment, denial of opportunity or similar matters.
  • Claims that directors acted dishonestly in dealing with business partners in joint ventures.
  • Claims that directors allowed a company to continue trading when they were aware that it was insolvent.

Q. Will I be covered for a criminal prosecution?
It is not possible to purchase insurance protection against criminal prosecutions, or the resulting fines or penalties. However, the policy provides cover for the cost of successfully defending a criminal prosecution.

Q. How many directorships can I include?
Each insured director may nominate up to three separate directorships for cover. Directorships are accepted from all industries with the exception of financial services companies, companies listed outside of Singapore, and companies with a negative net worth.

Q. Who is the insurer?
The policy is underwritten by Allianz Insurance Singapore.

Q. What is the role of SID in the policy?
SID takes no commission in assisting our members to process the application. We will forward the application to the broker/insurer for processing and assume no responsibility for delay or rejection.

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