What is Directors’ and officers’ liability insurance?
D&O stands for Directors & Officers.
Coverage features
D&O liability insurance covers the professional liability of the senior management of a company and its subsidiaries. In other words, it protects their personal assets against a claim from a shareholder, employee, regulator, supplier or any other third party for wrongful acts committed in the course of their duties that result in financial loss.
Although the policyholder is the company, the policy covers in an unnamed manner the natural persons who make decisions in the company and its subsidiaries, as well as representatives of these companies in other investee companies.
Wow do we work D&O insurance?
To work on a D&O policy, we analyse the corporate organisation chart, the financial statements and, in the case of a start-up company, the business plan. In this way, we ensure that everyone in the company or in the group of companies, in the case of a group, is covered.
- Directors' and officers' liability
- Liability for employment practices
- Tax liability
- Insolvency liability
- Environmental liability
- Subsidiary liability
- Criminal liability of the company (Spain)
- Liability for securities transactions
- Defence costs and bail
- Administrative fines and penalties
- Crisis management costs
- Risk management costs
- Trial care costs
- Psychological assistance costs
- Professional disqualification
- Formal investigation costs
What can happen to trigger D&O insurance?
- A shareholder complaint against managers who made an ill-advised investment decision that has caused economic damage to the company and the shareholders themselves.
- A female employee makes a claim against a manager and middle manager that she has been deprived of promotion in the company because she is pregnant.
- Claim by the Tax Agency against directors for delays in the filing of taxes by the company.
