Directors' and Officers' Liability Insurance

Directors’ and Officers’ Liability Insurance is an important form of insurance for directors, supervisory board members, and regulators. This insurance protects the personal assets of directors, supervisory board members, and regulators against the risk of being held personally liable for pure financial loss resulting from errors, omissions, or negligence in the performance of their duties. This applies, for example, to financial losses resulting from a management error caused by you or a fellow director. As a board, you must always perform your duties properly. If damage occurs due to improper management, the entire board is personally liable. To protect yourself against this, you can purchase directors’ and officers’ liability insurance. All legal costs, including the costs of a lawsuit, are covered under the liability policy.

Directors’ and officers’ liability insuranceprotects a director’s personal assets in the event that he or she is held liable. When you are appointed as a director of, for example, an association, you do not immediately consider potential future liability issues. However, due to recent changes in the law and case law, there is an increasing likelihood that directors will be held personally liable for the financial consequences of mistakes made by the board. This also means that a director’s personal assets may be subject to claims.

Directors’ and Supervisors’ Liability Insurance covers the personal liability of directors and/or supervisory board members up to the insured amount. This insurance ensures that the financial risk for directors and supervisory board members remains limited and that their personal assets are protected against errors or alleged errors. Personal liability insurance does not provide coverage for directors and supervisory board members.

In addition to the insured’s personal liability as a director, liquidator, or supervisory board member for pure financial loss resulting from an act or omission, the following matters are also covered under the directors’ and officers’ liability insurance:

• Liability for Improper Performance of Duties

If you are held liable for damages resulting from the improper performance of your duties.

• Liability for Tort

When you are held liable for damages resulting from the commission of a tort.

• Internal and External Liability

Liability for damages caused by the organization you manage (internal) and liability for damages caused to third parties (external).

• Legal Assistance

The costs of defense and legal assistance are covered by insurance, even in cases involving unfounded claims.

• Walk-in

If, after the effective date of the insurance, someone holds you liable for an incident that occurred before the effective date, that incident is covered, unless otherwise specified. You must not have been aware of the claim or circumstance at the time the insurance took effect.

• Runway

If, after the insurance policy has ended, you are held liable for an incident that occurred before the policy’s expiration date, coverage may be purchased in certain cases.

Damage caused intentionally or resulting from fraud or property crimes such as theft, deception, or forgery is not covered. In addition, the following items are also not covered under professional liability insurance.

• Fines and Penalties
• No coverage in the United States
• Insured persons within the same entity are not considered third parties
• Damages resulting from failure to comply with legal obligations regarding accounting and financial statements
• Liability for damages arising from legal acts that have provided you with a personal benefit or that were intended to provide such a benefit.

Thepremium for directors’ and officers’ liability insurance depends on the organization for which you’re purchasing the insurance and the amount to be insured. At Alpina.nl, we’ve already included an overview of estimated premiums for the various policies. This will give you an idea of what the premium for directors’ and officers’ liability insurance might be. Taking out this insurance is a customized process, which means you can request a quote from us. Within two business days, you’ll receive a personalized quote via email. If you accept the quote, you can purchase the insurance directly from us.

Are you considering purchasing directors’ and officers’ liability insurance? Then, of course, you’ll want to know how much such insurance costs and where you can best purchase it. You can do this by comparing directors’ and officers’ liability insurance policies. At Alpina.nl, we’ve already compiled an overview of the premiums for the various policies for you. This will give you an idea of the insurance premium. Of course, you can also request a quote from us right away. You’ll receive a quote tailored to your personal situation via email within 2 business days.