Directors and officers civil liability insurance
If you are a manager or executive, you may sometimes face legal disputes and financial losses arising from your duties and decisions taken in the activities of the organisation. This insurance is important for anyone who may be personally liable for the activities of their company, which may be conflict with their personal financial interests.
Directors and officers civil liability insurance
This insurance covers you if you become a manager or executive, a board member or a manager of an external company during the term of the insurance contract. Your spouse, heirs, guardians are also covered.
Insurance covers the following losses:
- the insured person’s legal defence costs;
- financial losses suffered by injured third parties as a result of the unlawful actions of the insured person;
- the cost of investigating the accident.
Why to choose ERGO insurance?
Extensive list of insured
The cover applies not only to the company’s chief executive, but also to other employees in managerial positions.
Extensive insurance coverage
You can choose from a wide list of up to ten insured risks and thirteen insurance coverage extensions.
Defence and reliability
The insurance will provide a support to represent the executive in litigation and liability issues. This insurance is seen as a guarantee of the company's credibility, as the company is concerned with the personal financial security of its managers as well as the stability and continuity of the company’s operations.
What is covered by directors and officers civil liability insurance?
Main insured risks
In the event of an unforeseen event, the insurance will cover against the following risks:
- directors’ and officers’ civil liability;
- expenses incurred by the company for compensation of losses for the insured person;
- liability for the company’s securities;
- an insured person against an insured person;
- liability for a violation of employment relations;
- liability for organisation and conducting of public procurement's.
Directors and officers civil liability
Insurance coverage applies to managers and leading persons against possible claims made by the company or injured third parties due to inappropriate decisions or actions taken in the performance of managerial duties.
Expenses incurred by the company for compensation of losses for the insured person
The insurance compensates the losses incurred by the company, due to court costs, fines, compensations or other payments related to inappropriate actions or decisions of managers and executives.
Liability for a violation of employment relations
This risk includes claims made by the company due to inappropriate behaviour or illegal actions of a manager or an executive, which may have a negative impact on the company’s securities.
An insured person against an insured person
This is the risk when one insured person, for example, a shareholder of a company, makes a claim against another insured person, for example, another manager, due to inappropriate decisions or actions taken by the latter in a managerial position or in the performance of managerial functions.
Liability for a violation of employment relations
Insurance coverage under this risk includes claims made due to a violation of employment relations, such as wrongful dismissal, discrimination or coercion, which may be directed against any employee of the company.
Liability for organisation and conducting of public procurement
This risk includes claims made due to improper organisation or conducting of public procurement, including violations related to compliance with competition rules or other legal acts.
What is covered by directors and officers civil liability insurance?
What can we cover additionally?
Cover for new subsidiaries
In case of choosing this risk, the insurance coverage shall automatically apply to the company which during the insurance contract period becomes a new subsidiary (through acquisition, incorporation, reorganisation or for any other reason).
Cover for outside directors
In case of choosing this risk, the insurance coverage shall automatically apply to outside directors who acted as managers by your order.
Cover for retired directors
In case of choosing this risk, the insurance coverage shall automatically apply to the directors who have retired, terminated employment with the company or ceased to perform their duties by mutual agreement until the end of the insurance period.
Cover for non-executive directors
In case of choosing this risk, we will compensate the defence costs incurred by a non-executive director and losses incurred by the affected third parties as a result of claims brought against the non-executive director.
What can we cover additionally?
20+
countries across the ERGO Group
1200
team members in the Baltics
640 000+
customers in the Baltics
90+
products