D&O insurance: professional indemnity-style cover for management and supervisory bodies

Description

D&O insurance: professional indemnity-style cover for management and supervisory bodies

The steadily increasing liability and exposure of management and supervisory bodies in corporations as well as private companies, foundations and associations is becoming an ever greater challenge for decision-makers. Against the background of around 9,000 laws, regulations and provisions to be observed every day, the risk of a breach of duty can hardly be avoided. Average costs and the duration of proceedings are rising due to the increasing complexity of claims.

D&O insurance protects management and supervisory bodies against unjustified claims and, within the contractual agreement, pays justified claims. In addition to defence and indemnity payments, valuable assistance services such as crisis communication are available. This also takes account of what is priceless – your reputation.

Who is insured?

  • Executive bodies and supervisory bodies and their deputies are insured.
  • Procurators and senior executives—and their equivalents under foreign law (e.g. officers)—are also insured when acting in a function comparable to a corporate body. Where liability is limited by statute or case law, D&O cover responds in line with that liability.
  • Named notification of individual board members is not required. New joiners are automatically covered. For persons who have left office, cover also applies within the agreed notification period for breaches of duty falling within the insured period of their former activity, provided D&O insurance was maintained.

What is insured?

  • Negligent and grossly negligent breaches of duty that cause or could cause financial loss are insured.
  • Cover applies worldwide for your firm and all subsidiaries, i.e. companies in which your firm holds at least 50.1 %, controls voting rights, or otherwise controls the company.
  • Cover includes court and out-of-court defence against unjustified claims as well as indemnity of insured persons for justified compensation obligations.

Which activities are insured?

All activities as corporate bodies from which a breach of duty can be derived are insured. Not every business decision that proves disadvantageous in retrospect automatically constitutes a breach of duty (business judgement rule).

More security. More performance. AIC.

Our coverage concepts stand for comprehensive protection and economically convincing solutions. Over 27 years of experience, excellent market knowledge and insurance concepts developed by experts create a clear advantage for you: professional insurance protection at attractive conditions in market comparison.