Directors & Officers
The SCHUNCK GROUP offers special insurance solutions for managers, such as Managing Directors, Board Members or Supervisory Board Members.
The coverage concept includes, on the one hand, company asset protection and, on the other hand, protection regarding the private lives of managers, even in cases relevant to criminal law. In addition, our product range also includes insurance solutions for IPOs or company mergers, as well as kidnapping and extortion insurance.
What do typical risk situations look like?
Decision-makers such as board members, managing directors, association board members or supervisory board members are increasingly held responsible for wrong decisions or misconduct, in many cases also for mistakes made by their employees. If this results in financial loss for the company, a claim can be made against a managing director for breach of duty, for example. There is a risk that the damage will have to be compensated completely from private assets. The consequences under criminal law are even more serious than those under civil law. Surprisingly simple, for example, it is enough for an employee to say that his superior knew about something or should have suspected it. Whether this corresponds to the facts or not is irrelevant, in the first instance. In any case, the investigating authorities would be forced to investigate the accusations.
What does a typical damage example look like?
An employee transfers 100,000 euros to an incorrect foreign account using a transposed number in the account number. The transfer cannot be reversed and the money is lost. The financial loss incurred by the company leads to the managing director being accused of organisational negligence. According to the argumentation, if the existing organizational and control guidelines had been implemented “properly”, the faulty transfer would have been noticed in time and would not have been possible in the first place and the financial loss could have been avoided. The managing director is held personally liable with his full private assets. The resulting consequences have a negative effect both professionally and privately.
What protection do manager insurance policies offer?
The SCHUNCK GROUP offers companies and managers insurance protection tailored to their individual risk situation. From comprehensive manager liability insurance to criminal legal protection and fidelity insurance, insurance policies can be adapted to the respective risk situation by means of freely combinable insurance modules. An excellent price-performance ratio, cost-effective and individual conditions are the main features of manager insurance policies.
The following insurance solutions are in the service portfolio:
Liability insurance for company managers. It protects executive bodies in the event of claims for personal liability within the scope of executive activities, both in external and internal liability. At the same time, in such cases, it is part of the company’s risk management for possible financial losses.
Insured persons are, for example, managing directors, board members, supervisory, foundation, administrative and advisory boards, but also their deputies or heirs; also insured are other executives, authorised signatories or so-called compliance officers.
Special legal expenses insurance for both company managers and all employees. It provides coordinated protection in the event of investigative or criminal proceedings against employees and managers and assumes, for example, the costs of defence, also on a fee basis or, if necessary, provides bail.
In the event of possible claims, in combination with a D&O insurance policy, it often accelerates the overall procedure.
Risk protection for the company against financial losses caused by theft, embezzlement, fraud, disloyalty, computer fraud, data misuse or other intentional unauthorised actions within the company.
The insurance cover regularly includes all employees (trusted third parties) and in some cases even damages caused by external third parties.
Liability insurance for claims within the scope of the liability risk due to faulty stock exchange prospectuses in the case of an IPO. A single premium usually covers a certain part of the liability period, often 3 to 5 years.
Usually very individually tailored insurance solutions, which are intended to assume or at least significantly reduce risks within the framework of a purchase or takeover process. The design options are extremely diverse, not least because of the often different interests of the parties involved.
Depending on the desired variant, all or certain groups of employees (e.g. managers, internationally active sales staff, fitters, etc.) or family members in the private sphere can be covered by the insurance. Both the policyholder and the insured person receive invaluable support from a professional crisis advisor in the event of a kidnapping or blackmailing case and for the financial consequences associated with such a case.
The SCHUNCK GROUP operates its own Competence Center specifically for the topics of D&O insurance, manager liability, compliance and financial losses, in which insurance experts continually adapt insurance solutions to current developments and jurisdiction.