Directors and officers insurance

Directors and officers insurance is aimed specifically at company directors and managers. Because with a D&O insurance, as the insurance is also called for short, managing directors or other executives receive financial protection.

Senior executives and managers not only bear a particularly high responsibility towards the company and its employees, but at the same time they can be held liable for damages. If they make a mistake, the resulting financial loss can lead to them having to pay for it with their private assets. Especially in the case of high financial losses, this can also mean high financial losses or even financial ruin for the executive. By taking out a special D&O insurance policy, it is possible to limit this financial risk.

The D&O insurance covers financial losses that occur in the course of management activities. If, for example, a manager breaches his or her duties and subsequently suffers financial loss, this can be settled through the insurance policy taken out. The insurance can be used to settle claims for damages by the company itself as well as claims that are brought against the company from outside as a result of the breach of duty.

With this type of insurance, it is even possible to cover past mistakes. This is because not all mistakes always come to light immediately and cause damage directly. However, the error must not have been known at the time the contract was concluded, otherwise co-insurance is not possible. However, there are also mistakes in the area of management that only have an effect after years. At the same time, it can make sense to combine D&O insurance with legal expenses insurance for financial loss. After all, it is not uncommon for legal disputes to arise in the context of management mistakes.