Protection of Directors’ and Officers’ Personal Liability
Business decisions can result in personal liability. D&O insurance protects directors, officers and other senior executives against the financial consequences of claims arising from their professional duties.
Directors, management board members, supervisory board members and other senior executives do not act solely on behalf of the company when making business decisions. In certain circumstances, they may also be held personally liable for resulting losses, putting their personal assets at risk.
Directors & Officers (D&O) insurance provides financial protection for individuals when claims are brought against them as a result of alleged errors, omissions or wrongful decisions made in the course of their duties.
Where Do Risks Arise?
Claims against directors and officers may arise from:
- Alleged wrongful business decisions
- Failure to exercise adequate oversight
- Breaches of legal or regulatory obligations
- Inadequate corporate governance
- Incorrect or misleading information
- Disputes with employees, shareholders, business partners or creditors
- Financial difficulties, insolvency or bankruptcy of the company
- Breaches of data protection, competition or compliance requirements
Even an unfounded claim can result in significant legal defence costs, lengthy proceedings and substantial reputational risk.
Who Can Be Protected?
D&O insurance may provide protection for:
- Directors and management board members
- Supervisory board members
- Authorised representatives and company officers
- Senior employees
- Other individuals responsible for significant business decisions
- The company when it indemnifies an insured person for covered costs or losses
The scope of coverage can be tailored to the company’s organisational structure, business activities, size and geographical scope of operations.
What Can D&O Insurance Cover?
D&O insurance may include coverage for:
- Legal defence costs
- Damages and settlements
- Costs associated with regulatory and official proceedings
- Protection in employment-related disputes
- Former and current directors and officers
- The parent company and its subsidiaries
- Claims brought in multiple jurisdictions
The exact scope of coverage depends on the agreed policy terms, limits of indemnity, deductible and the specific characteristics of the individual risk.
Local Support and Access to the European Insurance Market
D&O insurance can be arranged through the local Slovenian insurance market where suitable coverage and competitive terms are available.
For more complex risks, higher limits of indemnity, international operations or specific coverage requirements, we can also explore solutions available across the wider European insurance market.
This enables us to offer our clients:
- A broader range of insurance solutions
- Access to higher insurance capacity
- More flexible coverage terms
- Coverage for foreign subsidiaries
- Support in structuring international insurance programmes
A Solution Tailored to Your Company
When arranging D&O insurance, we first analyse the company’s corporate structure, business activities, financial information, ownership structure, international operations and the key areas of management liability.
Based on this analysis, we identify an insurance solution that reflects the actual risk profile of the company and its directors and officers.
Protect the people who make your company’s key business decisions.