D&O insurance

Managers and members of supervisory and executive boards can be held personally liable for erroneous and costly decisions they can be proven to have made. This is particularly the case in relation to third parties, such as tax and social security authorities, as well as internally vis-à-vis partners or shareholders. Here, a D&O (directors and officers) insurance policy offers you the necessary protection. D&O coverage is particularly relevant in cases in which the partners in a company are distinct from its management. Investors and venture capital funds often make the acquisition of such a policy to their favor a condition of their financial commitment. Decisions with intentionally negative outcomes are of course not covered.    

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