S&P Directors' liability insurance
Directors' liability insurance is one of the most important business insurances. It provides protection in situations where management or the board of directors have personal liability for damages. Through an insurance broker, you can usually get a more comprehensive and high-quality management liability insurance than directly from an insurance company. A higher-quality Directors' liability insurance is not necessarily any more expensive than a more limited version.
A leader can always be liable for compensation
Directors’ liability insurance (D&O insurance) covers costs already at the stage when it is investigated whether the manager or board member has actually caused damage with their actions. A member of the board of directors or a director may be held personally liable for damages caused, for example, by negligence or ignorance.
Directors’ liability insurance covers, for example
- advice from a lawyer
- court costs
- PR and crisis management costs.
In most cases, directors’ liability insurance is already needed when it is first established whether the manager or board member really caused the damage.
However, the vast majority of the D&O insurances only cover costs after the legal process has ended, in which case the costs must first be paid by yourself and collected from the insurance afterwards. In the solution negotiated by Söderberg & Partners, expenses are reimbursed as they arise.
Various directors' liability insurances
When taking out D&O insurance for your company, it's a good idea to familiarize yourself with the contents of the insurance, because there are very different levels of directors' liability insurance on the market.
In most cases, you can get a more versatile D&O insurance through an insurance broker.
The solution negotiated by Söderberg & Partners is one of the most extensive solutions on the market and is valid all over the world.
Managers of subsidiaries from both current and newly established companies are included in the scope of the insurance, and the insurance also covers managers and board members who resigned or retired during the insurance period.
D&O insurance is a business insurance
The directors' liability insurance is always taken out by the company on the behalf of an individual. The insurance can be seen as a fringe benefit related to management-level agreements.
Extensive D&O Insurance shows the management that they are important to the company. This is a benefit valued by the best directors and officers.
The management’s mistakes or negligence can affect the company, shareholders or third parties, such as creditors. The claims may be statutory, contractual or even based on criminal liability.
The number of claims for compensation has grown in the past years, and an increasing variety of parties are presenting such claims. Legal processes are typically long and expensive regardless of whether negligence has really occurred or not. The directors' liability insurance ensures that you have access to the best help and support available in difficult situations.