D&O Policy
What is a D&O Insurance Policy?
The D&O (Directors & Officers) insurance policy is designed to protect directors, executives, and members of corporate management bodies. It safeguards their personal assets in case of claims from third parties arising from errors, omissions, or breaches of legal duties related to their role. This coverage is essential in a complex and ever-evolving regulatory environment.
Why Is It Important?
Leading a company comes with significant responsibilities toward the business and third parties, such as investors, suppliers, clients, or employees. Poor decisions or regulatory breaches can expose executives to legal and financial consequences.
Who Is Covered?
The coverage applies to key figures such as the President, Vice President, Board Members, De Facto Directors, Executives, Statutory Auditors, and Supervisory Board Members. Additionally, it extends to roles related to corporate management and compliance, including Members of the Supervisory Body (D.Lgs. 231/01), the Safety Officer (D.Lgs. 81/08), the Data Protection Officer (D.Lgs. 196/03), the Data Protection Officer (EU Regulation 2016/679), Internal Audit members, the Risk Manager, and the Shadow Director.
What Does It Cover?
The D&O insurance policy covers:
Claims for mismanagement or negligence;
Violations of regulations, such as financial, environmental, or compliance-related laws;
Legal fees and defense costs in legal proceedings;
Damage to professional reputation;
Crisis management costs related to reputational damage.
When Is It Necessary?
It is particularly valuable in highly regulated sectors or companies with multiple stakeholders, such as investors, suppliers, and employees. However, this coverage is beneficial for any business, regardless of size. Even in small and medium-sized enterprises, directors and executives can be held accountable for potential mistakes.
Want to know more? Contact us for a consultation and discover how we can help protect your business.