Management Liability

Helping directors face the future and conduct business with confidence



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Risk Managers' increasing awareness of their management liabilities

Administrators, managers and directors of any company, regardless of its size or activities, carry significant responsibilities in relation to the way they conduct themselves and justify the trust placed in them. This may result in claims against them for actual or alleged breach of duty, neglect, misstatements, errors and omissions.

Taking the pain out of investigation

There is a growing number of governing bodies or authorities who can investigate a company and today, more attention is being focused on smaller companies. Even if an individual is not yet personally under investigation, immediate expert legal guidance can help and perhaps, better manage the situation.

Shared responsibility

As directors and managers are jointly and severally liable, an error on the part of one can have financial and personal consequences for the others, who may have acted with propriety. Strong cover, that ring-fences the cover individuals can receive, can help build the confidence required to work together.

Directors and Officers Liability insurance, the best possible defence

Investigations and court cases are time consuming and very expensive. Directors and Officers (D&O) insurance provides the assurance of having access to the highest quality legal representation and assistance from the first moment that an action commences.
Dragonshield™ is our best-ever suite of management liability insurance solutions, designed from scratch to meet the needs of our business partners in Asia.

Challenging Regulatory Environment

In Hong Kong’s increasingly litigious business environment, companies and their directors and officers are subjected to ever more onerous duties and responsibilities, and face a growing risk of being the target of legal action as a result of the management and business decisions they take.

Increased supervision from the regulators and government authorities and potential litigation from breaches have motivated directors and officers to take a more active interest in their company's affairs.

In spite of this exposure, a significant number of directors and officers do not have adequate management liability insurance in place.

Who is it for?

Public and private companies, partnerships and not for profit entities.

What is covered?


Designed to meet the management liability needs of public companies in Hong Kong

  • Advancement of legal defence costs
  • Coverage includes company's securities claims arising out of sale or purchase of company's own securities
  • Employment practice liability cover for the companies, directors and officers
  • Covers losses arising from claims made against the estate, heirs and legal representative of the insured
  • Automatic extension covers outside directorship of associated companies, joint ventures and non-profit entities
  • Automatic coverage for newly created or acquired subsidiaries
  • Optional Prospectus Liability Insurance covers errors or omissions in the prospectus of companies undertaking an initial public offering
  • Blanket Difference in Conditions (DIC) cover between Dragonshield and with any existing policy
  • Elective Side-A Reinstatement: option to purchase reinstated limit upon event of a claim
  • Long-Term Agreement (LTA): option for automatic renewal


PrivateEdge reimburses the Company, its directors or officers for the loss resulting from any claim alleging a wrongful act. The coverage highlights are as follows:

  • Protection for company and natural persons
  • Additional indemnity limits for board of directors
  • Defence costs relating to breach of contract claims
  • Identity Fraud coverage for the Company when any party other than the employee of the insured Company fraudulently represents the insured Company
  • Crisis event - public relations consultation
  • Investigation costs coverage
  • Public Relation expenses for corporate manslaughter
  • Bodily injury and property damage defence costs
  • Emergency costs - coverage incurred before written approval is obtained from the Insurer if Insurer's consent cannot reasonably be obtained
  • Civil fines and penalties where insurable by law
  • Lifetime discovery period for retired managers
  • Extradition costs
  • Insured Person's Tax Liability Cover
  • Asset and Liberty Cost ensures timely defence when an asset is confiscated or the liberty of the director or officer is restricted
  • Public relations expenses other than Crisis Event expenses
  • Court attendance allowance
  • Reproduction cost of lost or damaged documents
  • Automatic cover for new subsidiaries
  • Continuous cover provision - provides cover for claims not notified prior to commencement of renewed policy period (thereby providing incentive for renewal)

Product Details

Dragonshield™ is our bespoke management liability insurance solution, designed from scratch to meet the needs of our business partners in Asia.

Designed in Asia for local, international and global businesses, we believe our management liability insurance solutions will give directors and company officers the confidence to make the right decisions for their businesses.

What's new?

We've expanded our market-leading D&O cover, Dragonshield™, to include a suite of additional coverage products offering our clients the greatest possible protection.

Dragonshield™ Entity Investigation Cover

Complimentary cover with the DragonshieldTM D&O policy offering true entity cover for investigations (separate limit of liability).

Dragonshield™ POSI

The market's leading IPO form mirroring the dynamic cover in the DragonshieldTM D&O policy.

IPO Boost

Transferrable limits from the Public Offering of Securities Insurance (“POSI”) form to the D&O policy over a period of 3 years. Cementing the reason to purchase both D&O and POSI cover during an IPO.

Additional features

  • BIPD Exclusion: provides carve-backs for Non-Indemnifiable Loss, Insured Persons Defence Costs and Securities Claims.
  • Future Securities Offering: extends to cover all Non-US securities offerings (including IPO in another country).
  • Tax Liability: also covers unpaid corporate taxes of the Company where the Insured Person’s liability for such non-payment of tax is established by law.
  • Securities Claim: amended to meet the regulatory procedures faced by Asian companies.
  • Civil Fines and Penalties: affirmative cover for violation of the FCPA, 15, USC Section 78dd–2(g)(2)(B) and Section 78ff–(c)(2)(B).
  • Regulatory Crisis Event Costs: expanded pre-investigation cover (internal investigations).
  • Specialist Counsel: counsel costs for advice on any Securities Claim in any foreign jurisdiction.
  • US Insured v Insured Exclusion: amended by no longer excluding claims by insured persons.
  • Mitigation Costs / Mitigation Prosecution Costs: pre-claim cover for the principal purpose of avoiding a Claim being made by a potential claimant.

  • Provides flexible and comprehensive protection and services to cope with the downsides that occur in business for private companies.
  • Instant quotes are available for private companies with total asset size less than HKD200 million and not belonging to the following excluded industries: financial institutions, telecommunications, pharmaceutical, biotechnology, airlines, public utilities, energy, marine and mining industries.
  • For all other private companies, please contact us for a quote.

  • Provides flexible and comprehensive protection and services to cope with the downsides that occur in business for Not for Profit entities.
  • Instant quotes are available for Non for Profit entities with total asset size less than HKD100 million.
  • For all other not for profits, please contact us for a quote.
  • The specific terms, conditions and exclusions applicable to this insurance are as set out in the policy.