Directors and officers insurance
Whom it concerns:
Management insurance programs cover all persons who are legally responsible for the management of a company and who exercise its legal representation. These are the members of the board of directors, the chairman, the managing director and the general manager.
What it covers:
Third-party liability insurance coverage is triggered by third party claims, and in most cases it involves the costs of a specialist adviser to investigate the case, the cost of legal protection, and if there is proven liability for payment of the out-of-court settlement or compensation to be decided by the court. In particular, it can cover claims:
From shareholders for:
– mismanagement, mistakes and omissions, unjustified expenses, breach of duty
– misleading (eg creative accounting)
– violation of the Company’s Articles of Association
From traders (banks, customers, suppliers, competitors) for:
– failure to comply with agreements or breach of contract
– infringement of intellectual property rules
– Incorrect display of financial data
– exploitation of “sensitive” commercial information
Employees for:
– illegal termination of a contract of employment (dismissal)
– violation of labor regulations or terms of employment contract
– bias (discriminatory treatment)
– deprivation of promotions and promotions
– sexual harassment