Tata AIG rolls out insurance cover for SME directors

Tata AIG General Insurance Company has launched a liability insurance cover for directors and officers (D&Os) of unlisted small and mid-sized businesses.

The cover, christened as Highlight, will be tailor-made to the needs of small and medium companies and family-owned concerns which form a big chunk of the country's SME sector.

Most of the small companies are unlisted, fast, flexible and energetic but often with little management infrastructure and few formal control processes.

However, the risks faced by the directors and officers of the unlisted companies are similar to their listed counterparts.

They include regulatory investigations, employment practice litigations, including sexual harassment charges, stakeholder claims and accounting irregularities.

D&Os can be sued personally by any stakeholder for a decision taken by them on behalf of the company in their professional capacity as a director or officer of the company.

Dalip Verma, managing director, Tata AIG General, said: "Highlight is a comprehensive liability insurance product that will enable SMEs to manage risks and reap the benefits of Tata AIG General's extensive resources, state-of-the-art customer service, rich experience and leadership in liability insurance."

Highlight is a genuine attempt to demystify the D&O policy so that the target customer understands and appreciates it better.

"This is the first D&O policy that uses simple language to genuinely address the fears and concerns of the businessmen of small companies. Expensive lawsuits can have a particularly severe financial impact on the owner's personal net worth which is often directly linked to the fortunes of his company," he said.

Highlight is a unique liability insurance cover as it is a pre-underwritten product that requires minimum documentation.