The SCHUNCK GROUP offers special insurance solutions for top executives such as managing director, executive or supervisory board members (D&O).
The coverage strategy includes on the one hand protection of the company’s assets and, on the other hand, protection in the private life of top managers, including in criminal law matters. Supplementing this, there are also insurance solutions for companies interested in abduction and extortion insurance policies in our programme.
What do typical risk situations look like?
Decision makers such as executive and supervisory board members, association directors and general managing directors are increasingly being held accountable for wrong decisions or incorrect behaviour, in many cases for mistakes made by their employees as well. If this causes financial damage to the company, a managing director, for instance, can be sued for breach of obligation. There is the risk that the damage has to be compensated for completely from private assets. Even more serious than civil law consequences are criminal law ones. Surprisingly simple is the danger of a statement by an employee that his supervisor knew or must have known something. Whether or not this corresponds to the facts is not immediately important. In any case, the investigative authorities would be obliged to look into the accusations.
What does a typical example of a claim look like?
An employee mistakenly transposes the digits of a bank account and transfers euro 100,000 to the wrong foreign account. The bank transfer cannot be reversed; the money is lost. The financial damage done to the company results in the managing director being accused of administrative incompetence. With „proper“ implementation of existing organisational and control guidelines, as the argument goes, the erroneous bank transfer would have been noticed in time and not even been possible and the financial damage could have been avoided. The managing director is held personally liable with his entire assets. The resulting consequences have negative consequences, both professionally and privately.
What protection does D&O insurance offer?
The SCHUNCK GROUP offers companies and top executives insurance cover adapted to their individual risk situation. From comprehensive D&O to criminal law protection and up to and including loss of confidence insurance with freely combinable insurance modules, the insurance policies can be adapted to every risk situation. An excellent cost-benefit ratio, and moderately priced and individualised terms are the main features of D&O insurance.
The following insurance solutions are included in the benefits Portfolio:
Liability insurance for top executives. It protects the governance bodies if they are sued for personal liability in connection with their governance functions, both for external as well as internal liability. At the same time, it is part of the company’s risk management against eventual financial damages.
The insured persons are, for instance, managing directors, directors, supervisory board members, foundation governors, administrative and advisory board members, as well as their deputies or heirs; likewise included in the insurance are other top executives such as senior employees, procura holders or so-called compliance officers.
There is special criminal law insurance, both for top company executives as well as all employees. It protects in a coordinated manner for eventual investigations as well as criminal proceedings directed at employees and executives and assumes, for instance, defence costs, including on a fee basis or, where needed, it provides bail.
With potential claim cases in combination with D&O insurance, it frequently speeds up the proceedings altogether.
Risk insurance protection for the company against financial damages, caused by theft, embezzlement, fraud, misappropriate, computer fraud, misuse of data or other intentional forbidden actions inside the company.
Regularly covered by insurance protection are all employees (persons bound to loyalty) and, to some extent, even protection against damages caused by outside third parties.
Liability insurance for claims in connection with liability risks due to inaccurate public offering prospectuses for companies going public. Generally, with a one-time premium, a certain portion of the liability period is covered, frequently three to five years.
Generally, very individually tailored insurance solutions taking on the risks in connection with the purchase or acquisition process or, at least, meant to significantly mitigate them. The design options are extremely numerous, not least of all because of the very different interests of the parties involved.
Depending on the variant wanted, all or certain categories of employees (such as executives, internationally operating marketing employees, technicians, etc.) or family members in the private sphere are covered by insurance protection. Both the policy holder as well as the insured party is provided with inestimable support with a professional crisis adviser in a case of kidnap and ransom, as well as for the financial consequences associated with such a case.
The SCHUNCK GROUP operates, especially on the subjects of D&O insurance, executive liability, compliance and financial damages, its own competence centre in which insurance experts are constantly adapting insurance solutions to current trends and current jurisprudence law.