In accordance with the established internal standards and in line with global best practice, KMG takes out an annual third-party liability insurance policy covering the Company’s officers, including members of the Board of Directors.
KMG maintains an annual liability insurance policy covering members of the Board of Directors and the Group’s officers throughout the year. The insurance policy provides financial protection to directors and officers against possible claims arising as a result of unintentional and/or erroneous actions by officers. A D&O policy covers legal defence costs for directors, as well as financial expenses incurred as a result of any claim against directors arising as a result of their office.
The Group selects a local insurer through a competitive bidding process, with a mandatory requirement to have at least 95% of the risk reinsured in a market with a reliability rating of at least “A–” as per the Standard & Poors’ scale.
The insured amount (liability limit) is USD 100 mln, with worldwide insurance cover.
The Group’s D&O policy terms and conditions are in line with the national and global best practices in director and officer liability insurance.