1. D&O Insurance
June 5th 2013

2. Curriculum
General Information
History
Coverages
Limitation
Vendors

3. General Information Directors and officers liability insurance
insurance to manager and executive persons of of the company
Focus on those people and not the company itself
Covers losses and high risk decisions of executive employee
“Personal financial protection”
Motivates employees to take higher positions in the company

4. History Developed by Lloyd‘s of London Established in USA in 1930‘s
In the 1980‘s there was a „D&O-crisis“
Many companies took the chance to procure the insurance
As a result they added a number of clauses in the policy
the „D&O-market“ was born
There is no standard D&O-form
They used in a similar way (shared outline)

5. Coverages Insurance covers multiple organs:
Management of the company
Governing body
General managers
Executive positions
Insurance comes in to action, if…
… there is no bad intention
… there is no loose of duty to take care of thirds (customers, vendors, own company/employees)
… the insured person is not in knowledge of a fault in the past

6. Insurance protects you from both sides…
Inside the company
Outside the company
executive organs
customers
employees
vendors

7. Limitation
In case of a accusation you have to keep in mind the following things:
The claimant is the person who has to proof YOUR fault
You are not guilty until someone is able to proof a possible mistake
If you own stock options from the company you are work for, the insurance will not cover the full amount which is involved in the case
Usually there is a compromise between the two parties
The insurance will not cover any costs if you did something with a bad faith

8. Chartis
Chubb Corp.
The Travekers Companies
ACE Limited
XL Group
Zurich Financial Services
Allianz
HCC Insurance Holdings
The Hartford
CNA Financial Group