Each statutory body member shall be liable for breaching statutory obligations to the extent of his/her own assets.
Unintentional or erroneous decision, omission, negligence, or error in the performance of one’s duties can qualify as a breach of statutory obligations to act with due care.
D&O Insurance represents an essential instrument for the protection of corporate assets as well as that of personal assets of natural persons managing the company. Company representatives need tailor-made coverage which will protect them in critical situations related to the liability of officers or their protection against meritless claims.
Board members who have breached their duties while serving on a Board of Directors are obliged to pay damages they caused to the company jointly and severally.
D&O Insurance covers:
- Insured persons
- The Company
- Interests of shareholders, partners and creditors
D&O Insurance includes:
- Personal liability risk for the performance of duties of statutory body members and officers of a company and its subsidiaries
- Past, present and future statutory bodies’ members and other officers of a company and its subsidiaries
- External companies’ managers
- Compensation of damages resulting from actual or alleged breach of duties
- Legal representation costs and investigative costs
D&O Insurance advantages:
- Unlimited retroactivity
- Supplementary insurance of statutory liability of other executive officers
- Automatic coverage of subsidiaries
- Advance of legal representation costs
- Additional sum insured for supervisory board members
- Coverage for damages/claims resulting from unauthorised actions against employees
- Insured’s reputation clearing costs