3. General Information
• Directors and officers liability insurance
• insurance to manager and executive persons of of
the company
• Focus on those people and not the company itself
• Covers losses and high risk decisions of executive
employee
• “Personal financial protection”
• Motivates employees to take higher positions in the
company
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4. History
• Developed by Lloyd„s of London
• Established in USA in 1930„s
• In the 1980„s there was a „D&O-crisis“
• Many companies took the chance to procure the insurance
• As a result they added a number of clauses in the policy
the „D&O-market“ was born
• There is no standard D&O-form
• They used in a similar way (shared outline)
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5. Coverages
• Insurance covers multiple organs:
• Management of the company
• Governing body
• General managers
• Executive positions
• Insurance comes in to action, if…
• … there is no bad intention
• … there is no loose of duty to take care of thirds (customers,
vendors, own company/employees)
• … the insured person is not in knowledge of a fault in the past
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6. Insurance protects you from both sides…
Inside the company
Outside the company
executive
organs
customers
employees
vendors
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7. Limitation
• In case of a accusation you have to keep in mind the
following things:
• The claimant is the person who has to proof YOUR fault
• You are not guilty until someone is able to proof a possible mistake
• If you own stock options from the company you are work for, the
insurance will not cover the full amount which is involved in the
case
• Usually there is a compromise between the two parties
• The insurance will not cover any costs if you did something with a
bad faith
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8. • Chartis
• Chubb Corp.
• The Travekers Companies
• ACE Limited
• XL Group
• Zurich Financial Services
• Allianz
• HCC Insurance Holdings
• The Hartford
• CNA Financial Group
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