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#metoo, COVID-19, information leaks – how can executives prepare for modern risks?

It is clear that managerial positions come with a lot of responsibility. Persons in managerial positions bear various risks related to business operations and company management. But did you know that managers also have personal financial liability?

For example, managers may be personally liable for any loss or damage that they cause through negligence. In the worst case (in case there is no appropriate insurance cover), managers must sell off their personal property, such as their own private apartment.

New phenomena bring with them completely new types of risks to everyday life

New phenomena, such as #metoo, COVID-19 and various data breaches bring with them completely new types of risks for companies and their executives. The increasingly common idea that someone must take the blame and pay has increased the number of claims for compensation made towards the management of companies both in Finland and globally.

For example, the well-known retail chain Walmart in the USA was already sued because its employees find that the chain’s working conditions have been hazardous to health during the pandemic.

For the time being, the lawsuit targets the company, but it is very likely that shareholders will demand that managers be held liable.

Increasing number of liability insurance compensation payments

With the increasing number of claims, increasing amounts of D&O indemnity insurance compensation are being paid these days. In Finland, typical expenses for which compensation is paid are legal fees related to defence and litigation.

Financial errors and, for example, deficiencies in the working environment may also result in serious damage to reputation. A good D&O indemnity insurance also covers crisis management costs and enables the expertise of PR consultants to be used to salvage the company’s reputation.

Did you know that...

  • you can prepare against unfounded claims – whether the matter is a civil or criminal case.
  • legal expenses related to official investigations and criminal cases are not always covered by insurance policies.
  • under traditional D&O indemnity insurance policies, compensation for expenses is often paid only after the legal process has ended. If you end up being a target, you immediately want to hire the best possible lawyer. In the worst-case scenario, legal processes take years, so the bill can be rather hefty before any compensation is received.
  • sometimes insurance cover ends when an executive retires or resigns from the Board of Directors. However, liability does not come to an end.

Get the top talents by providing excellent coverage

A good and versatile D&O indemnity insurance is an employee benefit that all managers appreciate and even require from their employer. It may be the decisive factor enabling you to hire the best talents to your team. Both the manager and company benefit if action can be taken immediately in the midst of a crisis.

We have negotiated for our clients a readily available extensive D&O indemnity insurance package – Söderberg & Partners’ D&O indemnity insurance.

Our coverage compared to the usual

Our D&O indemnity insurance is significantly more versatile and comprehensive compared to regular D&O indemnity insurance policies. It provides genuine coverage that supports everyday work.

The best coverage is not always the most expensiveThe most surprising thing may be that due to our bargaining power, the D&O indemnity insurance of Söderberg & Partners is often more affordable than a traditional insurance policy obtained directly from an insurance company.We absolutely recommend that you review the coverage and request an offer.

Please contact us – we are happy to help you get your executives covered! 


Söderberg & Partners – D&O indemnity insurance 

Regular D&O indemnity insurance 

Insured persons

Managing Director and members and deputy members of the Board of Directors, managers and persons with managerial responsibilities.

Managing Director and members and deputy members of the Board of Directors.

Subsidiaries (and their executives)

Automatically covered by insurance, including new companies to be purchased or established.

Separate negotiations about coverage and inclusion on the policy are required.

Basis of liability

Finnish legislation in its entirety (including Limited Liability Companies Act and articles of association) if the insured can be held personally liable.

Limited Liability Companies act and articles of association.

Legal expenses for defence

Covers legal expenses for defence that are generated during the legal process. Includes expenses generated by official investigations.

Compensated at the end of the legal process. Limited coverage related to official investigations.

PR and crisis management expenses

Covers incurred expenses.

Provides no coverage.

Environmental damage

Covers legal expenses for defence if the insured is not found guilty of intentional acts.

Does not cover environmental damage or any related expenses.

Executives retiring or leaving the company

Unlimited continued period of claim notifications if an executive leaves the company or retires from their position during the insurance period.

Differences between levels of coverage. If the notification period is continued automatically, the maximum duration is 12 months.

Personal liability related to the company’s taxation

Coverage for the personal liability of executives regarding taxation in the event the company cannot pay taxes due to bankruptcy or insolvency.

Does not cover claims related to taxes.

External Board memberships

Board memberships in other companies that are approved or requested by the insured company are covered by the insurance.

Covers only the Board of Directors of the insured company.

Scope of validity

The whole world.

Finland, with the possibility of expansion subject to an additional fee (typically to cover Europe).


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