The 60-second version
D&O protects directors against personal liability from wrongful acts — regulators, shareholders, employees. I buy Side A/B/C policy, disclose to board, and book premium in company accounts.
Personal assets at risk without Side A when company indemnity fails
Returning founders on Pvt Ltd boards face Companies Act 2013 duties — D&O covers defence costs for regulatory and shareholder claims.
Side A protects director personally when company cannot indemnify; Side B reimburses company; Side C entity cover.
Premium is company expense if company is policyholder — disclose in board minutes.
Keyman lane: keyman guide.
D&O structure
| Side | Protects | When used |
|---|---|---|
| Side A | Director personally | Company insolvent / no indemnity |
| Side B | Company balance sheet | Company indemnifies director |
| Side C | Entity | Securities claims against company |
| Exclusion | Fraud/dishonesty | Not covered |
| Retention | Per claim deductible | Negotiate in quote |
D&O purchase sequence
Board approval
Resolve to procure D&O and name insureds.
Proposal form
Disclose litigation, related party deals.
Bind policy
Side A/B/C limits per risk appetite.
Book premium
P&L expense with GST ITC if applicable.
Claim protocol
Insurer hotline before admitting liability.
Claim flow
D&O kit
- Board resolution.
- Policy schedule.
- Proposal form copy.
- Claim hotline.
- Director list.
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Related party
Disclose all Section 188 transactions in proposal — non-disclosure voids policy.
Quick visual
Animated decision map
Community signal
What to watch in real discussions
Search community threads for the exact phrase, then treat repeated complaints as risk signals rather than official advice.
Open nofollow community search ->Interactive checkpoint
Turn this guide into a decision file
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LLP directors?
Designated partners can be named insureds — confirm wording.
Independent director?
Separate Side A critical — company may not indemnify.
US subsidiary?
US securities claims need US D&O rider.
Vs E&O?
E&O professional services — D&O governance acts.
Startup cheap?
SME D&O packages exist — ₹50k–2L premium band.
Resigned director?
Run-off tail cover for past acts — buy at resignation.
The plan is only as good as the sequence.
Tax, banking, schools, shipping — they all have dependencies. A wrong order costs months and lakhs. Get it right.