Some of the actions that may result into potential lawsuit claims are:
- Reporting Errors.
- Mispresentation in prospectus.
- Exceeding authority limits.
- Employee Practise – Harassment, Discriminations or out of turn promotions.
- HR related Issues.
- Failure to comply regulations.
- Errors or failure to follow laid tender terms.
- Shareholder actions.
Directors & Officers Insurance provides coverage for a wrongful act of omission by an employee and protects its all past, current and future directors including non-executive directors. For securities and employee practice acts, the policy can be extended to cover the company also.