Directors and Officers’ Liability Insurance

An executive is liable for management decisions that cause losses and damage to the company or its creditors.

Statutory liability
Board members must exercise due diligence, act in the most economically expedient manner, in good faith and in the best interests of the company.
Due diligence violations
Board members will be liable for violating their duties if they fail to comply with the due diligence standard applicable to them.
Losses and damage caused by management decisions
Causing economic losses and damage to the company’s owners, creditors, customers, suppliers, employees, competitors and investors.
Personal liability
Even though the company is also insured, an insurance contract will be signed to cover executives, and the interests of insured natural persons are covered first.

Both the company and a wide range of people in the company are covered.

Mitigated financial risks

The personal financial risk of board members is covered.

Funds to cover losses and damage

Insurance guarantees the funds to cover losses and damage caused by mismanagement.

Guaranteed security

Insurance gives board members confidence in their decision-making.

Higher value incentive package

Insurance is a way to boost the value of a board member’s incentive package.

Legal assistance for claims

The insurance covers legal expenses and costs for legal assistance related to claims against executives.

We help mitigate management risks

We have broad insurance experience. We have a thorough understanding of insurance services and how they work.

Head of real estate development failed to file for bankruptcy

The head of a real estate development company did not file for bankruptcy in time, despite being legally required to do so. The company then tried to sell the real estate quickly, but did so below market price. Creditors filed a claim for damages against the board member in the bankruptcy proceedings. The insurance reimbursed legal costs and losses and damage to creditors.

Manager of smaller construction company sued along with company

An individual commissioned a passive house from a construction company, but due to the complexity of the project, the completion date was delayed and the work has deficiencies. The claim against the construction company and its manager, including contractual penalties, was more than half a million euros. The insurance reimbursed legal costs and losses and damages, but not the contractual penalty.

Costs for legal assistance and legal expenses amounted to nearly 600,000 euros

A total of seven companies and twelve natural persons (including company employees) were accused of a cartel agreement. Costs for legal assistance were almost 600,000 euros. The insurance for executives covered the costs for legal assistance and legal expenses as well as losses resulting from the depreciation of the company.