For corporates

D&O insurance is used to cover the personal liability risk of the acting responsible persons, in particular the executive bodies of the participating companies:
– Liability of the bodies/managing directors vis-à-vis the company (“internal liability”/”external liability”)
– Personal liability of the bodies resulting from their activities as bodies vis-à-vis third parties

D&O/E&O insurance is a combined financial loss liability insurance for the “classic” personal liability risks of members of corporate bodies (D&O insurance) and the liability risks arising from operational business activities (E&O insurance). E&O insurance covers the liability risk of the legal entity (the insured company) and all persons acting on its behalf (including employees) “outside the activity of corporate bodies” towards third parties.

The combination of the two insurances avoids gaps in coverage or problems in case of a claim, which very often arise when only D&O insurance is purchased.

Every business is exposed to a variety of risks, and as a business owner, manager, or employee, you must be legally responsible for your decisions. In this context, the public prosecutor’s office must already ex officio pursue all tips and suspicious facts. There are numerous possibilities: failure to comply with occupational health and safety regulations, endangering consumer protection, environmental pollution and violations of commercial law. The costs of criminal defense are significant.

IPOs or other measures to increase capital (e.g., by issuing additional shares, issuing bonds or through an SPO (Secondary Public Offering)) entail a considerable liability risk for your company. There are numerous possibilities for this. Starting with false information during roadshows, through issuing false/misleading guarantees, to errors in the prospectus. In addition, there are also downstream duties for management (e.g., ad hoc duties), non-compliance with which triggers liability for the members of bodies. An IPO or POSI insurance policy provides the issuing company and its management with insurance coverage for the existing prospectus liability risk.

Reduce your risk as a buyer or seller in a share or asset deal in a M&A transaction. W&I insurance can cover recourse against you and your company from breach of warranty and indemnity claims. This facilitates the clear cut.