Directors & Officers Liability

Insurance

Directors & Officers Liability insurance – what is it about?

The truth is that liability of a company is limited, while its Director‘s – unlimited. In the event the corporate directors or officers are personally sued by employees, vendors, competitors, investors, customers, or other parties, for actual or alleged wrongful acts in managing a company, their family assets remain unprotected. Even in the case such unfounded claims are of provocative, or politically motivated nature, the cost of their legal protection can be huge.
This is the reason why Directors and Officers (D&O) Liability Insurance became a prerequisite for attracting and retaining key people in most companies or organisations.

What costs shall we indemnify?

  • Direct costs in reimbursing third party losses resulted by wrongful acts of the directors or officers in their managerial positions

  • Legal defence and loss mitigation cost

  • Investigation expenses

  • Public reputation recovery costs

  • Costs of lifting the personal assets and liberty restrictions, extradition expenses

  • Administrative fines and penalties

BUNDA D&O Insurance Advantages

  • Large sum insured

    Up to EUR 10 million

  • Broad definition of director

    Insurance coverage shall apply in respect of directors, officers, members of management or supervisory boards, as well as retired and non-executive directors of both main (holding) company and its subsidiaries or affiliates.

  • US jurisdiction

    We may endorse the insurance coverage to include USA and Canada.

  • Previous activities

    We will also cover claims against the director that are related to his or her activities made prior to insurance policy inception, that the company was not and could not be aware of.

  • Additional amount for legal defence

    If a full sum insured is exhausted, we provide an additional limit (up to 10% of the sum insured) to cover the costs of a legal defence.

Practical examples

DO_State Seaport Authority sample andy-li-CpsTAUPoScw-unsplash
State Seaport Authority against former port manager

Claim amount: nearly EUR 2 million

Essence of the claim: Port Authority has been ordered to pay pecuniary compensation for several unreasonably terminated contracts while the claimed port manager was in his position.

hand pull important color block from balance wooden stack business strategy and risk management control concept
Minor shareholder against executives of a retail commerce company

Claim amount: EUR 40 million

Essence of the claim: allegedly irresponsible asset management and lending and possible damage to the business caused by such actions.

Getting fired. Cropped image of handsome businessman in formal wear holding a box with his stuff, on gray background
Bank against its CEO

Claim amount: EUR 40 thousand

Essence of the claim: CEO of the bank was accused of acting against the interests of the company when he illegally dismissed an employee, as a result of which the bank suffered financial losses.

apartment repair concept repair tools and materials stand in a ruined room 3d render image
Recreation and Rehabilitation Centre against the former manager

Claim amount: EUR 35. 7 thousand and 5 percent annual interest

Essence of the claim: intentional actions and negligent and irresponsible omission of the manager in the implementation of the institution’s renovation projects.

Get a D&O insurance quote

To get an insurance proposal, please fill in the below form. We will contact you shortly to ask some more questions to collect the information that is necessary to provide a quote.






    * Compulsory field

    Alternatively, please complete our Application Form and send it to us by email ask@bunda.eu. This way we will be able to assist you faster!

    Download Directors and Officers Liability Insurance Form
    Contact D&O Liability Insurance Underwriter Report D&O Liability Insurance Claim Frequently Asked Questions about D&O Insurance

    Practical examples

    DO_State Seaport Authority sample andy-li-CpsTAUPoScw-unsplash
    State Seaport Authority against former port manager

    Claim amount: nearly EUR 2 million

    Essence of the claim: Port Authority has been ordered to pay pecuniary compensation for several unreasonably terminated contracts while the claimed port manager was in his position.

    hand pull important color block from balance wooden stack business strategy and risk management control concept
    Minor shareholder against executives of a retail commerce company

    Claim amount: EUR 40 million

    Essence of the claim: allegedly irresponsible asset management and lending and possible damage to the business caused by such actions.

    Getting fired. Cropped image of handsome businessman in formal wear holding a box with his stuff, on gray background
    Bank against its CEO

    Claim amount: EUR 40 thousand

    Essence of the claim: CEO of the bank was accused of acting against the interests of the company when he illegally dismissed an employee, as a result of which the bank suffered financial losses.

    apartment repair concept repair tools and materials stand in a ruined room 3d render image
    Recreation and Rehabilitation Centre against the former manager

    Claim amount: EUR 35. 7 thousand and 5 percent annual interest

    Essence of the claim: intentional actions and negligent and irresponsible omission of the manager in the implementation of the institution’s renovation projects.