Foreign company D&O Liability Insurance

What is Foreign company D&O Liability Insurance? Who is it for? Why do you need it? Why get it with First Cover? Still in doubt?

What Is
Foreign company D&O Liability Insurance

Currently, the laws and regulations are expanding worldwide; meanwhile, greater cross-border cooperation between regulators heightens enforcement. The increased legal exposure threatens the directors and officers of foreign companies being listed in the US stock market. Once the directors and officers are targeted by regulators while acting as representatives of the company, a standard Directors and Officers (“D&O”) liability insurance policy may not adequately protect them and their spouses. Only a tailored foreign company D&O liability insurance program can help protect these individuals and avoid business interruptions.

Who is it for

Foreign company D&O is for directors and officers of foreign companies who may be held personally liable for their actions and decisions while carrying out their duties. Foreign companies refer to the U.S. -listed companies domiciled outside of the U.S.

Why do You need it?

Avoid legal concerns caused by indemnification or defense cost advancement issues. In many countries, the law does not clearly allow a company to indemnify local directors and officers. Some situations require acquittal before the company can provide indemnification or defense costs.
Avoid the hassle of improperly filed taxes in other countries with the help of a policy geared towards local tax collection. Additional taxes apply to companies that place their insurance in another country, but when the insurer cannot collect these taxes, they must be filed by the company, which usually results in audits and penalties when filing is insufficient or if it fails.

Minimize operational disruptions caused by directors or officers responding personally to investigation or litigation.
Protect against personal asset freezing by providing (typically sub-limited) backup funds for essentials, like household expenses, in the form of unique local policies.
Retain and attract top local director and officer talent who would otherwise feel unprotected.