Why do I need D&O insurance if my company is an S.L. (limited company)?
Limited liability isn't absolute. If negligence, mismanagement or unpaid taxes are proven, courts and authorities can pursue the director's personal assets, such as homes and bank accounts, to settle the company's debts. D&O insurance is what protects your personal wealth.
Am I covered if the company becomes insolvent?
Yes, and it's one of the most important covers. In insolvency proceedings, administrators and creditors often claim against the director, alleging they worsened the insolvency. D&O pays for your defence and possible compensation if the insolvency is declared culpable.
Does it cover debts claimed by the tax office or Social Security?
Yes, through secondary tax liability cover. If the company can't pay its taxes or contributions, the tax authorities can open proceedings against you personally. The policy pays the defence costs and, following a final ruling and within the limits, the amounts claimed.
If I'm prosecuted, does the insurer advance the bail?
A court can require substantial civil and criminal bail within days, and if it isn't deposited, it can freeze your accounts. Allianz D&O provides and advances that bail and those guarantees from the start of the investigation.
Are my spouse's assets protected?
Yes. If you share marital assets and receive a claim as a director, the claimant may try to seize all your common assets. The D&O policy extends its protection to your spouse's or registered partner's assets.
Am I covered if an employee sues me for harassment or unfair dismissal?
Yes. Employment practices cover defends you personally if one or more employees sue you for harassment, discrimination, defamation or a dismissal they consider unfair and linked to your management decisions.
What if I left my director role last year and I'm sued now?
D&O policies work on a claims-made basis: if you're sued today for a decision you took two years ago as a director, the current policy covers you. If you retire or leave, you can activate an extended reporting period of up to 72 months for future claims about your past acts.
We're a family business. Do we need D&O too?
Yes. In family businesses, disputes between siblings, cousins or minority shareholders, for example over dividends or capital increases, often end in claims of disloyalty or mismanagement against the director. D&O pays the lawyers who defend you.
Does it help protect my reputation?
A public claim can damage your professional reputation. Allianz D&O includes reputation restoration costs, paying for public relations and crisis communication specialists after an unfounded accusation.
What's the difference between general liability and D&O?
General liability covers the company against damage caused to third parties, such as a fire or a defective product. D&O covers you, and your personal assets, against claims for errors in your management, financial or employment decisions. They complement each other.
