Directors and Officers liability insurance (D&O)
EUROVALLEY offers liability insurance for members of the company's statutory and supervisory bodies under new legislation.
Members of statutory and supervisory bodies have extensive duties in relation to business management and representation of the company externally. Failure to perform their duties may cause damage to the company or third parties for which they are liable up to the entire value of their personal property and regardless of their fault.
The most common areas of error are:
- contractual relationships with suppliers / customers
- Group restructuring, acquisitions, reinvestments
- workplace relationship
- relations with shareholders
D&O insurance helps to mitigate the consequences of their misconduct, thus:
- Significantly reduce the risks associated with the exercise of functions in the company and provide assurance to members of statutory and supervisory bodies
- Reduce the risk such misconduct on the economic situation of the company
- ensure cover for compensation claims by shareholders, business partners, partners, creditors
EUROVALLEY has long-term experience and extensive references in the area of D&O insurance in the Czech Republic as well as abroad. Our specialists, who understand the legal aspects of this insurance, will explain the benefits for your company and prepare a quotation.
Benefits of D&O insurance
- A unique solution to cover your unlimited, objective and joint responsibility
- protects the company and its management from the consequences of unintentional action by board members
- Insurance includes past, present and future members of the company's bodies
- In addition to the financial damage caused, the insurance also covers the legal representation of insured persons and a number of other costs
The responsibility of the members of the institutions is one of the most strict types of responsibility. Members of statutory and supervisory bodies are legally exposed to far greater responsibilities than ordinary employees. A person who is personally liable for any misconduct in the performance of his/her duties and the scope of liability cannot be limited.
D&O insurance helps mitigate the consequences of misconduct and provides assurance to board members in the performance of their duties.
Their liability is:
- strict - regardless of his own fault, the member of the body bears the burden of proof
- unlimited - without any limitation up to the value of all personal property
- joint - members of company bodies are all liable
Duties of Directors and Officers:
- to perform their function with the care of a proper manager, to perform it “with the necessary loyalty and with the necessary knowledge and diligence”
- comply with the competition rules
- to keep the required records and accounting, to inform shareholders about the company's affairs
- maintain confidentiality of confidential information and facts
- guarantee the company's liabilities in the event of its bankruptcy
- the supervisory body must supervise the exercise of the powers of the statutory body and the conduct of business activities