DIRECTORS & OFFICERS LIABILITY
Constantly changing regulations, the increasing significance of shareholder value as well as an ever growing sensitivity of the public and the media; these are all factors that lead to the fact that managers are increasingly held responsible for alleged or actual mistakes. Decisions which seem correct today may, due to changing circumstances, be deemed as reproachable misconduct from an ex-post perspective. Whether in product development or in the selection of staff – it is a fact that: the line between entrepreneurial risk and neglect of duty is easily crossed. If the neglect of duty is committed culpably, the manager is liable without limitation also with private assets, and therefore a comprehensive insurance cover is indispensable.
TYPICAL EXAMPLES OF DAMAGE
Assumption of costs for a lawsuit
Costs for the defence against unjustified claims for damages
Assumption of financial loss
Internal and external liability (claims may be raised by third parties or by the decision maker’s own company)
Board of directors