Kathmandu. ‘D&O’ insurance means directors and officers insurance. Insurance is a form of insurance that protects the directors and senior executives of the company from legal claims, accusations or lawsuits related to their actions.
If the company or its executives are implicated in a court or regulatory body due to any decision, mistake, negligence or breach of duty, this insurance covers their legal expenses, damages and payments. This insurance is especially useful when company shareholders, employees, officials or third parties sue the company’s leaders. It protects the personal and business capital of the company and its executives.
From big companies to startups, this insurance is necessary. Every company has a director or manager. This insurance is very important to maintain their reputation and bear the costs incurred during any court proceedings.
D&O insurance is prevalent in the international market. The demand for this insurance has been increasing lately.
D&O insurance has not yet come into circulation in Nepal. As a result, if there is any legal hassle, the concerned company or the employee himself has to fight a legal battle at his own expense.
Chunky Chhetri, former president of Nepal Insurance Association and CEO of Sagarmatha Lumbini Insurance Company, said that D&O insurance is not in vogue in Nepal so far. “This insurance is prevalent in the international market, but it has not been envisaged in Nepal,” he said, adding, “However, the companies and their officials and employees and shareholders need this insurance very much.” This insurance will help financially in the ongoing legal battle. ’
