Directors’ and Officers’ Liability InsuranceLiability insurance for company management
Insurance for company management
A company’s managing director and board members or the annual general meeting chair may be held liable for damages caused by negligence – even from their personal assets.
Professionals at your assistance in case of loss
We will investigate whether you are liable for indemnification and negotiate with the injured party if necessary.
Includes cover for legal expenses
Directors’ and Officers’ Liability Insurance covers investigation and legal expenses resulting from a claim for damages.
Directors’ and Officers’ Liability Insurance protects your company and its decision-makers
A company’s top management makes critical business decisions every day. These decisions may have far-reaching consequences for the company’s operations. Even carefully prepared decisions may turn out to be unsound and unprofitable.
The purpose of Directors’ and Officers’ Liability Insurance is to protect the company’s top management from personal liability. The insured persons are the company’s top management, such as the managing director, members of the board of directors and the chairman of the annual general meeting. A covered damage may relate to, for example, mistakes in the management of the company’s affairs or negligent use of company funds.
A company’s directors and officers are not usually held liable except on very weighty grounds, but even an unfounded claim for damages may result in significant expenses for your company. Liability insurance also protects top management from legal expenses arising from a dispute over damages, even in the event that none of your directors or officers are ultimately found liable.
What does Directors’ and Officers’ Liability Insurance cover?
The insurance covers damages which members of the company’s top management have caused while serving as a member of the company’s governing bodies and for which they are held personally liable under law. The liability insurance covers financial losses incurred by the policyholder, i.e. the company, or by a third party.
Directors’ and Officers’ Liability Insurance is also a means to protect the board and managing director against claims for damages. It provides significant cover when investigating whether a liability exists.
In the event of loss, you will be assisted by Pohjola Insurance experts who will investigate whether the person is liable for the loss. If the claim is disputed and taken to court, your liability insurance will also cover legal expenses.
Liabilities of Board members and the Managing Director
Any actions or omissions of the managing director or member of the board of directors may cause a loss to the company, a shareholder or a third party, such as the company’s creditor.
According to the Limited Liability Companies Act, a member of the company’s administrative body may become personally liable for any loss which
- they have deliberately or negligently caused to the company, or
- they have deliberately or negligently caused to the company, a shareholder or a third party in violation of the Limited Liability Companies Act or the Articles of Association.
Examples of losses related to Directors’ and Officers’ Liability Insurance
Example 1: The Board decided to secure a company receivable in a bankruptcy. This was the Managing Director's responsibility. The Managing Director was leaving his post, and the matter was forgotten. The receivable was a loss to the company and the Managing Director was liable for it to the company. The loss was compensated from the Directors' and Officers' Liability Insurance less the deductible.
Example 2: A company had to dismiss an employee who had repeatedly and seriously neglected his duties. The employee was of the opinion that he was discriminated against and sued the Board member who had been in charge of the dismissal. The matter was not indemnified from Directors’ and Officers’ Liability Insurance because the insurance does not cover claims related to employment. If the company has legal expenses insurance, it can claim compensation for the legal expenses arising from the employment dispute.
How can I take out Directors’ and Officers’ Liability Insurance for my company?
Please leave your contact information using the button below and we will send you a quote for Directors' and Officers' Liability Insurance.
Requesting the quote will not obligate you in any way. Our experts at Pohjola Insurance have extensive understanding of the sector and can provide more information on the content and price of Directors' and Officers' Liability Insurance. We also offer customised liability insurance for your company’s specific needs. Contact us for more information.
After receiving your request for quote, we will contact you to determine the best liability and other insurance solutions for your company!
In the op.fi service, you can easily and safely manage all of your company's insurance transactions. The service allows you to, for example
- report a loss and see how your loss report is processed
- print out certificates of insurance
- order a Green Card for company vehicles
How to activate the Internet Service:
- Sign the Agreement for Digital Transactions and name the administrators.
- Administrators can add other users and their access rights to the service.
- Read more about the op.fi service for corporate insurance customers
- Sign the Agreement for Digital Transactions (in Finnish)
- Directors and Officers' Liability Insurance, product guide (pdf)
- Directors and Officers' Liability Insurance, insurance terms and conditions, VA 06 (pdf)
- Directors and Officers' Liability Insurance (AS OY), insurance terms and conditions, VA 08 (in Finnish) (pdf)
- Directors’ and Officers’ Liability Insurance, Insurance Product Information Document (pdf)