D&O insurance, also known as Directors and Officers liability insurance, is crucial for executives, board members, managing directors, and supervisory board members of companies. Anyone serving in a role where they make decisions on behalf of the company can benefit from this insurance. It offers protection against personal liability in instances where decisions and actions taken in their professional capacity could lead to financial losses.

D&O Insurance provides coverage for a wide range of risks, including:

• Internal Liability (Company): Protection when executives are held liable to their own company, for example, due to poor decision-making or breaches of duty.
• External Liability (Third-party claims): Protection when managers are liable to external parties outside the company. This can cover various areas such as non-payment of taxes and duties, violations of capital preservation obligations, breaches of customs regulations, or liability issues related to grants.

D&O insurance typically covers the costs of legal defense in lawsuits and compensates for damages claims that may arise from such cases.

The recommended coverage limit depends on various factors, including the company's revenue, the industry, and individual risks. The amount of coverage should be determined based on these individual factors, such as the company's revenue and personal risk assessment. It should be sufficient to adequately cover potential liability claims and the associated defense costs.

Yes, many D&O insurance policies also provide protection for former executives (ex-directors and ex-managers). This is important as claims can often arise after leaving the company.

Yes, some D&O insurance policies offer the option to take out a policy for multiple affiliated companies or organizations. This can be cost-effective if executives are active in different units.

Yes, D&O insurance policies typically include certain exclusion clauses. These may apply if the insured's breach of duty is intentional and knowing, or if claims arise from contractual penalties, fines, and compensations with a criminal character.