Directors and officers liability insurance (D&O)

Directors and officers liability insurance (or D&O for short) provides protection for a company’s executive bodies (senior managers & board of directors). This protection may be necessary if the board of directors is alleged to have breached its duties and claims for damages (for pecuniary loss) are made. In general, the company will take out this insurance for its directors and officers. However, you can also request cover as a private individual for individual appointments.

D&O insurance protects the personal assets of senior managers and board members. The insurance is structured to cover indemnities and defence expenses in particular.

Depending on the company’s provider and wording, extensions to coverage might be able to be offered. These could include external appointments, company reimbursement during a leave of absence, absence of directors and officers (key man/key person insurance), costs in connection with special investigations, organizational legal protection and support with company statements.

Legal protection and/or cyber components can also be included in the insurance, such as precautionary legal costs, pecuniary loss - criminal law, pecuniary loss - data protection law, costs to minimise reputational damage, defence of injunctive relief and information claims, defence of unjust enrichment and repossession claims and defence of personal and material damage claims.

Prevention-related assistance services complete the services offered.

In the event of intentional breaches of duty, there is no entitlement to the benefits.