D&O insurance

Today, D&O insurance is an integral part of a company's insurance portfolio. As a special form of pecuniary loss liability insurance, it is used to protect company managers and supervisory bodies against claims for breach of duty both by the company itself (internal claim) and by injured third parties (external claim). As insurance for the account of third parties, it is taken out by companies for the benefit of their management personnel.

Personal D&O insurance is suitable for managers who want to provide for themselves – either in addition to an existing D&O group insurance policy or because a D&O insurance policy for the company does not exist.
The contract is concluded by the natural person individually. The benefits under the contract are therefore exclusively available to it and do not have to be "shared" with others.

Managers have to organize and to supervise the processes and their errors or omissions can cause significant financial loss to the law firm. This D&O-product especially protects managing partners, office managers, authorized signatories, compliance officers, members of supervisory bodies and other insured persons in case of a claim by the law firm (internal claim) and by third parties (external claim) because of a supposed breach of duty concerning their obligations in their functions. Policyholder is the law firm; it is an insurance for the protection of the insured (natural) persons.

Where the German Stock Corporation Act (Aktiengesetz) or the German Corporate Governance Code requires a deductible to protect an executive board member against risks arising from his/her professional activities by a D&O group policy, the D&O deductible insurance steps in. It insures the portion of a D&O claim to be borne by the executive board member him/herself and thus protects him/her from recourse to his/her personal assets.