D&O insurance - protection for supervisory board members and managers
Better cover for lower costs - with experts at your side.
With responsibility comes risks. This is where the Directors & Officers (D&O) insurance helps you. It protects you and your executives from personal liability risks due to incorrect decisions. Here are three reasons why you absolutely need it:
01
Liability claims by shareholders
Shareholders can hold the management and executives of a company accountable for losses or damages caused by alleged misjudgments.
02
Claims of creditors
Creditors such as suppliers or lenders can assert claims if they believe that the management of the company has violated its duties and thereby caused financial losses.
03
Disputes of employees
Employees can sue the company or its executives for discrimination, harassment, violation of labor laws, or other work-related matters.
Directors & Officers insurance (D&O)
The most important in a nutshell
A D&O insurance acts as a legal shield for natural persons such as shareholders or managers. It protects you from personal financial liability in crucial business situations such as claims for mismanagement, gross negligence, or fraud. Even slight negligence can lead to liability claims. Without this insurance, those affected must personally bear the costs of damages - up to personal bankruptcy!
As soon as your company has more than one officer (CEO, authorized officer, external investors), D&O insurance makes sense!
What does a D&O insurance cover?
The "Directors & Officers Insurance" protects insured officers who have committed professional errors from:
Claims from their own company (inside liability)
Claims from third parties (outside liability)
Joint and several liability (each debtor must pay the full amount of damages because they are jointly responsible for the same debt)
Necessary legal and court costs to defend the claim
Costs from judicial and extrajudicial settlements
After liability (liability after leaving the company)
As a senior executive, professional errors can follow you into personal bankruptcy - the average damage amount is €110,000!