Directors & Officers (D&O) Insurance
In short, the essentials
D&O insurance acts as a legal protection shield for natural persons such as shareholders or authorized representatives. It protects you from personal financial liability in critical business situations such as lawsuits for mismanagement, gross negligence or fraud. Even slight negligence can lead to liability claims. Without this insurance, those affected must personally pay for damages – up to and including personal bankruptcy!
As soon as your company has more than one party (director, authorized representative, outside investors), D&O makes sense!
What does D&O insurance cover?
“Directors & Officers Insurance” protects insured entities that have committed professional errors against:
- Claims from your own company (internal liability)
- Applications by third parties (external liability)
- joint and several liability (each debtor has to pay the full amount of the damages
- necessary legal and court costs to defend the claim
- Court costs and out-of-court settlements
- Subsequent liability (liability after leaving the company)
As a manager, professional mistakes can lead to personal bankruptcy – the average loss is €110,000!
2024-05-01 22:06:30
#Insurance #SureIn
