Board of Directors Protection
Kidnap & Ransom - exortion K&R insurance policies typically cover the perils of kidnap, extortion, wrongful detention, and hijacking. K&R policies are indemnity policies – they reimburse a loss incurred by the insured. The policies do not pay ransoms on the behalf of the insured. Typically, the insured must first pay the ransom, thus incurring the loss, and then seek reimbursement under the policy.
Losses typically reimbursed by K&R insurance include:
- Ransom monies - Money paid or lost due to kidnapping
- Transit/delivery - Loss due to destruction, disappearance, confiscation, or wrongful appropriation of ransom monies being delivered to a covered kidnapping or extortion
- Accidental death or dismemberment - Death or permanent physical disablement occurring during a kidnapping
- Judgements and legal liability - Cost resulting from any claim or suit brought by any insured person against the insured
- Additional expenses - Medical care, PR counsel, wage and salary replacement, relocation and job retraining, and other expenses related to a kidnapping incident.
The policies also typically pay for the fees and expenses of crisis management consultants. These consultants provide advice to the insured on how to best respond to the incident. Even the most basic training for people traveling to dangerous places is not easily provided or is not obtained by small to mid-sized companies.
Directors and officers liability (often called "D&O") is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. Such coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are brought against directors/officers simultaneously. Intentional illegal acts, however, are typically not covered under D&O policies.
Legal Protection of the members of Board - What costs does it cover?
- Fees of lawyer and Bailiffs
- The costs for conducting the Trial
- Legal witnesses and experts compensation have been summoned or appointed by the Court
- The judgments of operation costs
- Legal costs of the opposing party, if they have been awarded against the insured