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Directors and Officers

About

Liability insurance for directors and officers (D&O) protects the personal assets of directors and officers based on the liabilities they need to assume because of their role.

Who can/should purchase this insurance

All companies that seek to offer additional protection to their directors and officers, fulfil a direct request by them for this protection, or offer it as a competitive advantage to secure the best professionals.

Advantages

Protection for directors’ and officers’ personal assets
Directors’ and officers’ defense costs are included in covered claims
A benefit when seeking to attract the best professionals
Provides security to directors and officers when making decisions

Coverages

D&O insurance was created to cover the costs of defense and any settlements owing by directors or officers in the event of being attributed personal liability as a result of their role in the management of a company and in line with the terms of the policy. This insurance offers the following coverages:

Coverage A

Pays the insured (director or officer) directly

Coverage C

Follows a special model; is applied in cases where the company trades securities. In this case, the company can also be considered as the insured in the event of claims related to their management.

Coverage B

Pays the purchaser (company) that advanced the costs to the insured

Additional Coverages

In addition to the product’s most basic coverages, over time specific needs started arising on the insurance market. To address these needs, particular clauses, coverage extensions, additional coverages, and endorsements were devised, along with a series of changes to the clauses.

Internal Lawyers

This allows the lawyers that are part of the policyholder’s staff to be considered as insureds.

Insured’s Advisers

This allows the insured’s advisers that are part of the policyholder’s staff to be considered as insureds.

Advising and Handling Lawsuits Abroad

This coverage provides for the payment of lawyers to handle lawsuits outside of the insured’s jurisdiction.

Affiliates

This coverage enables the policy to also include affiliate companies, i.e., companies on which the policyholder has significant influence, without being a majority shareholder.

Internal Accountants, Risk Managers and Internal Auditors

Allows accountants, risk managers, and auditors who are part of the policyholder’s staff to be considered as insureds.

Voluntary Resignations

This extends the complementary time limit of insureds who have voluntarily resigned to ten years.

Piercing the Corporate Veil

This coverage ensures that insureds are covered in the event that the courts decide to pierce the corporate veil of the company.

Publicity Expenses

This coverage enables the hiring of advisors to recover the image of the insured in the event of a claim that harms its reputation.

Outside Directorship (ODL)

Extends the coverage to directors appointed by the policyholder in companies in which the policyholder has the authority to make such an appointment.

Additional Expenses for Experts

Enables the engagement of experts to assist with the technical reports for the legal defense of the insureds in the event of a claim.

New Controlled Company or Subsidiary (with up to 30% of the Policyholder’s Total Assets)

Enables subsidiaries that are created or acquired after the effective date of the policy to be automatically included under the policy, as long as their total assets are limited to 30% of the policyholder’s total assets.

Online Levy of Execution and Freezing of Assets

Enables the advance of salaries to insureds undergoing online levy of execution. The sums must be returned as soon as the online levy of execution is ended.

Unfair Labor Practices

This coverage guarantees the defense of the insured, plus any settlements they are compelled to pay, in the event of Unfair Labor Practices.

Extradition Cases

This coverage enables the defense of the insured in extradition cases.

Claims Advanced by an Outside Entity

Offers coverage in cases where the complaint is made by outside entities (legal entities where officers are specified by the policyholder).

Spouse or Common-Law Partner Liability

Extends the coverage to the spouse of the insured in the event of claims where they need to be part of the suit.

Errors and Omissions

Extends coverage to cases where the insured is involved as a result of errors and omissions by the policyholder.

Insured vs. Insured

Enables coverage for insureds in claims against other insureds. The policy will only guarantee the rights of the defendant in the case.

Retired Insured Persons

Extends the complementary time limit of retired insureds by ten years.

Policyholder vs. Insured

Enables coverage for insureds in claims entered by the policyholder itself.

Crisis Management

Enables the hiring of advisors to recover the image of the policyholder in the event of a claim that involves an abrupt and sharp drop in their share price. The policy includes a list of situations in which it is possible to use the coverage.

Emergency Defense Costs

Coverage for the costs required for the defense of an insured, if there is no time to notify the claim to the insurer.

Disqualification

The coverage will replace the salary of an insured who has been legally disqualified in a claim covered under the policy. The coverage ends as soon as the insured’s disqualification has ended or when he or she resumes paid activity.

Fines and Penalties

The coverage will pay fines and penalties, both civil and administrative, imposed on the insured as a result of claims covered under the policy up to the maximum settlement limit provided for.

Inquiry Costs

The coverage will pay for the insured’s defense in cases of inquiries or investigations by government agencies.

Consent Decrees/Agreements

The coverage will pay for consent decrees or agreements to be undertaken by the insured in the event of a claim covered under the policy.

Extraordinary Events with Regulatory Bodies

This coverage will guarantee the defense of the insured in case of a critical regulatory event, which is understood as an official procedure by the authorities involving the production of documents.

Environmental Liability for Officers and Directors

This coverage guarantees the costs of defense, plus any settlements owed by the insured, in claims involving environmental damage. Costs for required clean-up are not covered.

Environmental Liability for Officers and Directors (Only for Defense Costs)

The coverage guarantees the insured’s costs of defense in claims involving environmental damage.

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