Risk Management and Insurance

There are many types of insurance options out there that business owners can get. Insurance helps protect your company from different risks that can come up during normal operations. Choosing what is required can seem overwhelming. The risks a business is subject to can be fairly unique. Some of our advisory services have been around,

Directors and Officers Liability Insurance, often known as D&O Insurance is a type of liability Insurance. The D&O policy covers personal liability of directors, officers and employees arising due to wrongful acts while performing duty. It also covers defence costs and other expenses incidental to a loss. Since the Directors and officers of the Company are holding a fiduciary position in the Company, they are thus liable for all the acts committed by them under the management and supervision of the Company. This Insurance provides protection to them in case of any legal liability arising against them by the shareholders, employees, creditors or stakeholders of the Company. It is thus a protection against the personal civil liability of the Directors and Officers.

Keyman Insurance, When a company feels that the loss of certain employees can significantly impact its performance, then it purchases a Key Man Business Insurance Policy where:

The policy is proposed by the company
Premium payments are made by the company
The life of ‘key’ employees is insured for a fixed amount
The company is the beneficiary of the policy

Hence, a keyman policy offers coverage to the company for the losses arising due to the death of its key employees.

Workmen Compensation (for manufacturing firms) It is a publicly-sponsored system that pays monetary benefits to workers who become injured or disabled in the course of their employment. The following are covered:

Injury caused due to disease or gone worse by the condition of the employment.
Injury caused due to an accident during employment
Partial and permanent disability
Temporary disability or death
Legal cost as well expenses incurred with the Company’s consent