D&O-Insurance

Due to stricter laws, regulations and judgments CEO´s are more and more confronted with higher risks. Attentive authorities, specialized lawyers and higher requirements result in a complex, expensive and more difficult judicial environment.

The CEO will face a liability immediately after a violation of the duty of care has been given.
This can happen as a result of inadequate recruitment or faulty accounting, non-payment of taxes and duties as well as obligations in case of insolvency. The managers are fully liable with their entire personal assets.

If a representative from your company will be claimed according to a breach of duty resulting in a financial loss, the D&O insurance will protect his/her interests. The cover includes the judicial and extrajudicial defence of baseless claims as well as the settlement of justified claims plus it also contains the evaluation of the liability.

The insurance will be valid for all members of the board, Managing Directors and Officers without personalization - worldwide cover will be given also for subsidiary companies.

Prior to the written demand the insured persons often need a legal advice before a possible breach of duty will occur. In various numbers of cases the D&O insurance will allow you to ask for legal assistance from a lawyer. All costs involved to prevent you from baseless compensations as well as to release you from justified claims, will be covered.

Examples are premature termination of the employment contract as a consequence of the breach of duty or the refusal of the exoneration from the CEO on the initiative of the shareholders. In both cases the cost recovery is already valid for preventive actions and a claim for damages will not be made yet.
As a complementary component the legal protection is also included.