According to the law on commercial companies, all company bodies (management and supervisory board) are required to act with the attention of a good expert – professional, because they are responsible for the company’s operations.
However, everyday business carries the risk of unintentional business decisions that may result in compensation claims against the responsible persons of the company.
The liability insurance policy for members of the management board and directors (D&O) provides insurance protection and covers defense costs, amounts awarded by the competent court as compensation and costs, amounts awarded by the competent court or body due to violations of the law and dependent costs, administrative and misdemeanor fines, discretionary with the prior written consent of the insurer, and more.
