What is Directors and Officers Insurance?

Directors and Officers Liability Insurance

Directors and Officers Liability Insurance comes as the protection of personal liabilities for its board members and management staffs.

Directors and Officers Liability is most of the time known as D&O Insurance.

As Directors and/or Officers, you are directly and personally liable of any decision you take for the company. Knowing that, there is a large number of third-parties that may sue you for your work decision. From your shareholders to your employees, passing by government, clients and more….

D&O insurance is the key to protect company management and let them focus on their job more without fears for their personal liability.

What is covered?

Directors and Officers Liability Insurance basically can covers:

  • Your defence costs and legal representation expenses
  • Judgements, settlements and bail bond costs
  • Losses incurred for civil fines and penalties
  • Crisis costs
  • Public relation expenses
  • Cost arising from extradition proceedings
  • Tax contribution in case of insolvency of the company while one or more of the insured have a personal liability
  • Reputation protection expenses

What should you know?

Even if the claim is not relevant and built without solid arguments, you would face defence costs that can strongly affect your cashflow. Therefore, a D&O case can be devastating for any company and particularly for SMEs.

In many SMEs and especially in their foreign branch, we often meet manager who think they have no personal liability as they are not directors. This is a mistake. Any acting officer is liable for his personal decision in the course of his work. Whatever he is General Manager, HR manager, CFO, Factory Manager etc…


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