Zen Vichaar

Broadly speaking, a D&O insurance policy offers liability cover to companies' directors and officers for claims made by others resulting from decisions and actions made while undertaking their normal duties under the employment contract. The policy includes different types of exclusions; one of them is insolvency and bankruptcy exclusion. The insolvency and bankruptcy exclusion is a provision under a D&O policy that excludes coverage directly or indirectly from the insolvency or bankruptcy of the company. Purpose of the Insolvency and Bankruptcy Exclusion 1. Risk Management: The increased risk associated with a situation involving insolvency or bankruptcy is a consideration noticed by insurers while bringing forth this exclusion. In particular, claims tend to increase at times when a company is undergoing financial trouble and stakeholders are trying to recover their losses. 2. Moral Hazard: The exclusion helps cap moral hazard, whereby directors and officers may take more

  Professional indemnity insurance, also called errors and omissions (E&O) insurance, gives indemnity to the professionals against allegations of negligence or errors in their professional services. Professional indemnity policies frequently contain certain provisions for employee fraud and dishonesty. The following is an in-depth analysis of how employee fraud and dishonesty coverage aspects are addressed within a professional indemnity policy in India. Employee fraud and dishonesty coverage aspects Fraudulent acts by employees: Professional indemnity policies can include The extension to cover fraudulent or dishonest acts by employees is of importance to the business as it cushions it against financial losses resulting from such acts, which may include among others embezzlement, theft or fraudulent financial reporting. Indeed, some contractual covenants insist on this extension for employee dishonesty . The partners in the case of firms and directors in the case of company are no

  Professional indemnity (PI) insurance, otherwise referred to as errors and omissions insurance in businesses, protects professionals and their businesses against negligence, mistakes, and omissions regarding professional services rendered. One such significant area that needs to form part of the PI policies is defamation cover. Defamation cover under a professional indemnity policy offers protection for claims of defamation, whether libel—written defamation—or slander—spoken defamation—that comes out of the professional activities carried out by the insured person. Key points of Defamation Cover under a Professional Indemnity policy 1. Damages: The policy provides indemnity for legal liability for damages awarded to the claimant against whom the insured has been found guilty of defamation. 2. Defense Costs: It includes the cost of defense against claims for defamation, which may be quite high, even in respect of claims that turn out to be groundless or ultimately unsuccessful. 3. Pub

The major points of the Professional Indemnity policies in India are related to breach of contract, breach of duty, and privacy concerns. Let us understand the aspects of breach of duty, breach of contract, and breach of privacy in professional indemnity policies. Breach of Contract in PI Insurance 1. Definition: A breach of contract occurs when a party does not fulfill their obligations as stated in the agreement. 2. Coverage: PI insurance typically covers claims arising from professional negligence, errors, or omissions that result in a breach of contract. However, deliberate or intentional breaches are usually not covered. 3. Claims: The insured must claim under the PI insurance that breach of a contract resulted from a professional error or omission. Further, the breach should be attributable to circumstances beyond the control of the parties and justifiable on specific situations of the contracting parties  Breach of Duty in PI Insurance 1. Definition: Negligence is breached duty—