Directors & Officers Liability Insurance

staff liability

In an extremely competitive and intense environment, such as the one in which most businesses, managers, senior management executives and directors operate today, they are called upon to take responsible decisions both for the company itself and for third parties. Over recent years, due to successive changes in the financial environment and the implementation of a stricter regulatory framework, more complaints and claims have been filed against businesses and their executives.

Directors’ and Officers’ Liability Insurance offers protection both to executives and the company itself for errors and omissions which may arise during the discharge of their duties, which may give rise to claims from third parties who may be customers, suppliers, public authorities, shareholders or employees.

What types of claims could arise against a company and its executives?

Just some examples are given below:

  • Claims from shareholders about reductions in share value or about poor management, misleading information, or the disclosure of false financial data
  • Claims from employees for breach of contract terms, unlawful termination of employment contracts, unjustified refusal to promote them, bias (discrimination), sexual harassment or moral damage
  • Claims from public organisations and agencies about fraud or non-compliance with regulations
  • Claims from competitors about copyright infringement or slanderous defamation
What does a D & O policy cover?
  • The financial compensation awarded by the competent courts
  • Legal expenses for the insured person
  • Defence and investigation expenses
  • Any out-of-court settlements
  • Loss of money due to employee misappropriation

It’s worth noting that these types of insurance cases are handled by senior executives at DF Advisors who have experience and specialisation in the field of third party liability. All such cases are handled with the strictest of confidentiality.