Directors and officers insurance

Secure Your Leadership, Safeguard Your Business

When is this useful?
Suppose you're running a business and make a big decision that doesn't work out. Shareholders, competitors, investors may get upset and decide to sue you. Directors and Officers Liability Insurance has your back and pays for your legal defence.

Why do you need directors and officers liability insurance?

Legal Protection
Cover personal liabilities from managerial decisions
Financial Security
Ensure personal assets of your directors and their dependants are safe from potential lawsuits
Decision Confidence
Enhance decision-making, knowing an insurance safety net exists
Talent Attraction
More easily recruit top talent who expect D&O coverage
Investor Confidence
Increase trust among shareholders knowing risks are managed
Regulatory Compliance
Keep up with Indian law requiring D&O insurance for certain businesses
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What does Directors and Officers Liability Insurance cover?

Defense Costs
Covers litigation costs, investigation fees, and attorney charges
Addresses the financial burden of damages/settlement costs awarded by courts.
Wrongful Acts
Protects against claims from misrepresentation and breach of duty.
Regulatory Fines
Helps with certain penalties imposed by regulatory bodies.
Civil Damages
Covers financial loss from civil suits.
Employee Practices
Extends to cover claims related to unfair dismissal, discrimination, etc.
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Who should buy a D&O liability insurance?

New startups
As a startup, attracting top talent and securing investment are critical. D&O insurance can help in attracting seasoned leaders and assuring investors about risk management. D&O Insurance is considered an important factor by Independent Directors running corporate governance checks. 
Growth Stage
With growing operations comes increased scrutiny. D&O insurance helps protect against potential lawsuits as the company scales up.
Large Entities
Legal liabilities can be sizeable for established businesses. D&O insurance safeguards your leaders, enabling them to make confident decisions that drive progress. While protecting your balance sheet from the depletion of assets.

How is D&O liability insurance cover better with Plum?

Risk mitigation
Your company and board is protected for liabilities that can arise from unforseen wrongful acts.
Adequate evaluation
Your company and board is protected for liabilities that can arise from unforseen wrongful acts.
Legal compliance
Your company and board is protected for liabilities that can arise from unforseen wrongful acts.
Regulatory investigation
Your company and board is protected for liabilities that can arise from unforseen wrongful acts.
Builds reputation
Your company and board is protected for liabilities that can arise from unforseen wrongful acts.
Financial coverage
Your company and board is protected for liabilities that can arise from unforseen wrongful acts.

Protect your organisation
against all risks

Directors And Officers Insurance

Protects the directors, officers and employees of your business against personal liabilities.

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Who do we recommend directors and officers insurance for?

Broadly speaking, the D&O cover is essential for all business entities registered under the Companies Act (2013), irrespective of size and growth stage.

What's Covered

  • Personal liability of the Directors & Officers

  • Losses incurred by the insured’s company

  • Claims related to buying/selling/ownership of securities. (Only for listed companies)

  • Losses if sued by past/ present/ prospective employees owing to wrongful termination

What's not covered

  • Product Liability

  • Prior acts

  • Intellectual Property Rights

  • Medical Malpractice

  • Money Laundering

Errors and Omissions Insurance

Guards your business against financial risks arising from a negligent act, error/omission, unintentional breach of contract, or failure to render professional services to a party.

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Who do we recommend errors and omissions insurance for?

If your product/ service can meaningfully impact your customer’s revenue, you should strongly consider E&O insurance cover. Some relevant businesses here are technology, consultancy and professional services like law/ finance.

What's Covered

  • Costs arising from failure to fulfil a contract/ product delivery

  • Damages resulting from Unauthorised Access to Computer Systems due to destruction/ deletion/corruption of electronic data

  • Negligence regarding the content of any Media Communication, misappropriation of trade secret

What's not covered

  • Any intentional, dishonest, fraudulent or criminal act

  • Bodily Injury or Property Damage

  • Breach of an express Warranty/ Breach of Guarantee

  • Delay in delivery or performance

Employee Dishonesty Insurance

Protects your business against financial losses due to criminal acts linked to money or securities, committed by an employee/employees.

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Who do we recommend the employee dishonesty cover for?

We recommend employee dishonesty for any industry where employees have access to valuable assets or financial information.

What's Covered

  • Legal fees, costs, and expenses incurred while defending against a demand, claim, lawsuit, or legal proceeding

  • Court Attendance Costs in case of civil proceedings

  • Cost of reconstituting data lost by the insured / Cost of investigation to determine exact loss

  • Extortion Cost

What's not covered

  • Prior or subsequent discovery of loss

  • Consequential loss

  • Kidnap and Ransom

  • War

Commercial General Liability Insurance

Protects your business against financial risks arising from death, bodily injury or damage to property. 

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Who do we recommend the commercial general liability cover for?

A commercial general liability cover is a key policy you should get as soon as you open a business, across industries. It is particularly relevant when your business has physical premises.

What's Covered

  • Damage incurred by third party due to any bodily injury

  • Damage to property

  • Damage towards advertising related suits

  • Medical expenses due to accidental bodily injury

What's not covered

  • Product Liability

  • Intellectual Property Rights

  • Medical Malpractice

  • Money Laundering

Cyber Liability Insurance

Shields your business from information technology & infrastructure risks. Such risks are breaches of data/privacy, malicious cyber attacks etc.

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Who do we recommend cyber liability insurance for?

Cyber crime can affect any sector or industry that uses technology to store, process, and transmit data. However, some major sectors like healthcare, technology and education are frequent victims of cyber crimes.

What's Covered

  • Loss arising out of breach of privacy or security

  • Expenses incurred to prevent or end a cyber extortion threat

  • Costs incurred to determine data restoration and privacy notifications to impacted individuals

  • Business interruption losses incurred by the company

What's not covered

  • Bodily Injury/ Property Damage

  • Criminal, Dishonest and Fraudulent Acts

  • Prior Acts

  • Insolvency

Asset Protection Insurance

Safeguards your business from losses revolving around damage to physical assets 

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Who do we recommend the asset protection cover for?

If you are an organisation investing in office equipment for your employees/businesses, we recommend an asset protection cover to safeguard such equipment.

What's Covered

  • Sudden and unforeseen physical damage, including breakdowns

  • Protects against loss due to Faulty operations, theft, natural calamities etc

  • Add on: Cost of reconstruction of data caused by a peril

  • Add on: Additional expenditure incurred due to the use of a substitute computer system

What's not covered

  • Regular wear and tear from use and continuous operation

  • Wilful act and gross negligence

  • Consequential losses

  • Third-party fault


Frequently Asked Questions

Why do I need business insurance?

Business insurance is essential because it safeguards your business from unforeseen financial risks. It can help cover the costs of property damage, liability claims, legal fees, and other expenses that could otherwise affect your business.

How much does business insurance cost?

The cost of business insurance depends on many factors, including the size of the business, the industry, the location and the coverage limits. Check out our recommendation engine to receive policies tailored to your business with estimated costs.

What does business insurance cover?

The coverage provided by business insurance depends on the type of policy you purchase. Common coverage areas include property damage, liability claims, shareholder lawsuits and data breaches.

Do companies belonging to specific industries particularly need business insurance?

Every business faces unique risks and liabilities, regardless of industry.

It would be prudent to reach out to your insurance provider for a clear picture of the risks typically faced by businesses like yourself and how to mitigate such risks. Book a meeting with a Plum insurance expert here.

Why should I choose Plum for Business Insurance?

  1. Provides one-touch access to trusted insurers and cost-effective plans.
  2. Connect with insurance experts for regular check-ins and advisory support
  3. Brings the expertise and leverage with insurance companies for high-value claims