D&O-Versicherung

Directors and Officers (D&O) insurance is specifically designed for company executives and managers. It provides financial protection to managing directors or other leaders against personal liability arising from their professional duties.

Executives and managers carry a high level of responsibility toward the company and its employees, and they can be held personally liable for damages. If a mistake occurs, resulting financial losses could require them to cover the damage from their private assets. In cases of significant financial losses, this could lead to substantial personal financial strain or even bankruptcy. A D&O insurance policy helps limit this financial risk.

The insurance covers financial losses that occur in the course of management activities. For example, if an executive breaches their duties and causes a financial loss, the insurance can cover the resulting claims. This applies both to claims made by the company itself and claims brought against the company by external parties as a consequence of the breach.

D&O insurance can even cover past errors, provided the mistakes were unknown at the time the policy was taken out. This is important because some management errors may only become apparent years later. It is often advisable to combine D&O insurance with financial loss legal protection coverage, as management errors frequently lead to legal disputes.