Civil liability insurance, why should managers and directors hire it?

March 25 , 2022 // Specialty : Professional Liability: lawyers, doctors and other professionals

Published in Qué!

Company directors and administrators must be clear that their professional development entails risks and responsibilities of an ever-increasing scope. And it is that the frequency with which senior officials receive claims that put their assets at risk continues to grow. This leads to the determination that taking out D&O Civil Liability Insurance is the most effective way to keep yourself safe. Tax or legal non-compliance, making poor strategic decisions, salary policies that are not considered equal, accidents, risk situations... there are many situations that can end up in lawsuits against the manager, administrator or director, endangering their personal assets, lifestyle and even the continuity of the company. It's not worth the risk, even more so if you take into account that Thenowo's insurance comparator makes it easy to find the one you really need, adapting to the circumstances and individualities of each senior position.

WHAT DOES D&O INSURANCE COVER?

Although it will depend on the option chosen, the most common basic coverages are: defense, civil and criminal bonds, claims for employment practices, administrative processes against the company, fines and penalties, risk management and image recovery. As already mentioned, Thenowo is capable of adapting the insurance to each client, giving the possibility of adding extra coverage that makes the policy more complete. These could be the defense for corporate homicide, professional disqualification, psychological assistance, special excess limit for non-executive directors, constitution of criminal bonds, coverage of the entity for employment practices and corporate criminal liability.

THE PROTECTION OF D&O INSURANCE

Although often only directors, board members and administrators are mentioned, the responsibility extends to all those who exercise the functions even if they are not formally recognized, as well as the de facto partner, spouse or children. It should not be forgotten that one responds with personal assets and, in the event of death, the debt will be inherited. In other words: an incident of this nature can literally change the life of both the senior official and his family. Therefore, this policy protects the following individuals: administrators, managers, directors and any other senior position with management functions; spouses, heirs and legatees; former managers or middle managers. It is not worth the risk and even less knowing that both your quote and your contract are online and instantly, to start protecting yourself today.