Directors and officers liability insurance
covers the personal liability of the insured in respect of a company, in which the latter is a manager, director, controller or a member of the Board or a managing partner in a general partnership or a limited joint stock company for:
- Any sums up to the agreed limits of indemnity, which the insured shall be legally liable to pay to the company as compensation for damages, caused as a result of any wrongful act or omission in the performance of the managerial or controlling functions assigned to him/her;
- The cases of his/her direct liability to creditors if such liability has been explicitly provided for by the law;
- Any claims settlement expenses made with the consent of the insurer. Such expenses are included in the limits agreed under the policy.
The insurance will cover only damages foreseeable at the time of origination of the liability, which are in direct causal relationship with the culpable breach of obligations of the insured, which are imperatively stipulated by the law. Such damages are established on the grounds of any claims which have been initially submitted in writing within the period of insurance, provided the events on which the claim was based have arisen after the inception date of the insurance or after the retroactive date stated in the policy (if such date has been agreed on renewal of the insurance policy).
The insurance premium is agreed as per the tariff of the insurer valid at the time of signing the insurance. It is determined on the basis of the annual turnover of the company and the limits of liability.
The indemnity due under the present insurance shall be fixed on the basis of an out-of-court agreement between the insured and the injured party. If such an agreement is not reached the indemnity will be payable on the basis of an enforced court decision which will include the expenses incurred by the insured for the legal proceedings. The insured is entitled to insurance indemnity if he/she has submitted any proof of effected payment of compensation to the injured party.