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D&O Liability
General liability insurance for bodies and managerial staff of legal entities.
Who is insured?
The insured party is the company itself. The "insured persons" who benefit from this special protection are:
• current, future and also former members of the uppermost
operating management echelons and also
• the strategic supervisory and guidance bodies from public
limited companies and cooperatives (advisory board, administration)
Apart from the legal position of the entity, a virtual entity function can be sufficient for a D&O liability (Such a comparison is also rated according to the actual decision-making and management competence).
Due to the joint liability the members are only insured as the management and supervisory entity. This protection covers the members of the entity of the insured party, and this also extends to subsidiary companies (company coverage).
What is insured?
The insurance protection exists for all cases in which the insured persons become liable in accordance with legally-stipulated rules and regulations. A pre-requisite is the proof of damages for which a manager is causally responsible due to his actions breaching his line of duty. The insurance protection is valid worldwide.
Cover not only exists when a company, due to a legal claim being made against it, takes recourse against the insured person. It also applies in particular to those claims which the insured party enforces internally against insured persons (so-called internal claims), without the outside aggrieved party becoming active. Only with this far-ranging cover for internal claims, can the security requirements of insured persons be sufficiently accommodated.
What is not insured?
• Repayment claims (emoluments, royalties) are classified as being
in the fulfilment area and therefore are not considered as claims.
• Factored out of the insurance protection are claims based on agreed
contractual penalties and payment penalties.
• Similarly the consequences of intent and scientific dereliction of duty not covered
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