D&O Insurance | Raghnall Insurance

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Potential DO Risks and Real World Scenarios You
Should Know About!
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About Us
Raghnall is Indias leading insurance broker and
risk advisor in MSME Segment. It serves large
commercials, MSMEs, Start-ups and individual
clients with data-driven risk solutions and
advisory services to grow their business. As well
as work closely with the most respected
insurance, Reinsurance and technology partners to
provide solutions that help clients manage their
total risk exposure.
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OVERVIEW
DO insurance policies provide liability
protection for corporate managers against
lawsuits that may result from choices and acts
they undertook while performing their duties.
Businesses today face a higher risk of
liabilities and litigation due to the
increasingly complicated legal landscape
frequently sparked by unfavourable news events.
DO insurance is typically purchased by
businesses since litigation is costly and their
related expenses are increasing. In addition,
given the possible risks involved, businesses
without a strong DO insurance policy are
unlikely to be able to recruit top executive
talent.
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1.Violation of depositary responsibility Having
some financial issues and needing funding, a
firm's creditors sued its directors and officers
for failing to promptly identify, assess,
negotiate, and arrange the sale of corporate
assets, which led to the company defaulting on
its existing loans. Thus, the investors filed a
lawsuit against the corporation, claiming that
several of the company's officials had personal
ties to a contractor engaged by the company to
retool its ..production line.
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2. Disregard for workplace regulations When
certain laws are broken, an organisation
frequently has to halt operations until the
violations are fixed. Inevitably, this decrease
in output will lead to a decrease in revenue,
which, in the worst situation, might lead to the
company going out of business. For example, after
being fired, a female employee sued the
corporation, the directors, and the officers for
wrongful termination on the grounds of gender
discrimination.
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3. Intellectual property theft A vice president
quit his job to launch his own business. His old
employer filed a lawsuit against him and his new
company on the grounds that he had taken
corporate licences to market proprietary software
with him, causing unfair competition and
trademark infringement.
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4. Distortion of the truth
With a client, a business negotiated a sizable
contract. In order to fulfil the contract's
demands for production and delivery, the
corporation had to have specific financial and
human resource resources available. The directors
exaggerated the firm's income and skills, and
once the contract was awarded, the company was
unable to fulfil its obligations. Hence, the
client filed a lawsuit.
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CONTACT US
Address Jito House, 3rd Floor, Plot no. A-56,
Road No 1, MIDC Marol, Next to The International
by Tunga Hotel, Mulgaon, Andheri East, Mumbai,
Maharashtra 400093 Website https//www.raghnall.c
o.in/ Contact number 91-7045161616 Email Id
consult_at_raghnall.co.in
THANK YOU