Directors & officers liability insurance
What is it?
Directors and officers liability insurance protects executives of the company and the company from potential losses that may be caused by the unlawful actions (inaction) of these individuals.
What is insured?
Liability of executives of the company arising from their actions or omissions caused damage to third parties or (and) company:
- Due to non fulfillment or improper fulfillment of requirements;
- Due to competence exceeding;
- Due to improper performance or control of the company’s contracts;
- Due to a false or misleading announcement;
- Due to errors or omissions;
What costs are compensated?
- Defense, litigation costs;
- Costs of event investigation;
- Cost of loss reduction;
- Costs of restoring reputation;
- Crisis regulation costs;
- Costs of monetory, personal limitations;
- Other costs.
Why is it worth to insure?
Insurance advantages for the company‘s executives
- Insurance coverage is applicable to company executives regarding their personal liability of their own property;
- All former, current and future employees of the company are insured;
- Insurance protection is provided to the heads of company subsidiaries;
- Insurance coverage is valid regardless of whether the claim is justified or not.
Wide application of insurance coverage
- Legal representation expenses for the defense of company executives in civil, administrative and criminal proceedings;
- Damage caused by the company executives in relation to labor relations;
- The damage caused by the company executives to the company or its shareholders due to the lack of their prudence while performing their duties;
- The fines imposed on the company’s executives for failure to perform various duties, improper execution or violation of legal acts;
- May be also applied to the retroactive period (due to unlawful actions of the company’s executives (inaction) that took place before the conclusion of the insurance contract.
Insurance benefits to the company
- Competitive advantage for your company to attract high-level managers;
- Security for your company against possible losses caused by the actions of recruited executives;
- Attractiveness to investors due to lower probability of loss of investment.
- Insurance benefits from EUR 500 000 to EUR 20 million;
- Reliability and choice of Lloyd’s of London syndicates from several syndicates with a financial stability of at least A + (Standard & Poor’s rating);
- Potential policyholders: wholesalers or retailers, professional services companies, municipal enterprises, industrial or construction companies, IT and telecommunications companies, listed companies, healthcare institutions, other private or public sector companies;
- Law applicable to the insurance contract – the law of Republic of Lithuania;
- Extended term of 6 years of event report for resigned persons;
- Insurance cover applies in the event of an insolvency of an enterprise;
- Insurance coverage area: the whole world except USA / Canada (in individual cases, possible agreement and inclusion of USA / Canada);
- Insurance period 12 months;
- Deduction of EUR 0 to both the manager and the company.