D&O Insurance

Directors & Officers Liability (D&O) Insurance

Company managers can be held legally responsible for mistakes made in the performance of their work.

Allianz Global Corporate & Specialty's (AGCS) Directors and Officers Liability (D&O) Insurance provides cover for company managers to protect themselves from claims made against them. The risks we insure include prospectus liability and employment practices liability. What's more, D&O insurance can also reimburse the insured company if it has paid on behalf of its managers to settle claims from a third party. 

Navigating today’s business environment is a mammoth task. Tightening regulations, emerging technologies, increasing shareholder activism, intensifying class action litigation activity, escalating merger objections and IPO activity, and increasing levels of public and governmental scrutiny are all challenges for corporate directors and officers.
Then there are emerging risks such as data breaches and cyber-attacks, climate change and even human slavery in the global supply chain, which can also drive claimants to bring legal proceedings against officers or boards. Personal accountability has been a major theme since the 2008 financial crisis and continues unabated. Whether it’s the general public, the media, investors or government, executives are increasingly being held personally responsible for their actions, decisions and conduct.
As a result, company directors and senior managers globally face a real and growing threat from legal and regulatory liabilities. If things go wrong, they are increasingly likely to face costly regulatory investigations, criminal prosecutions or civil litigation, putting their personal assets and liberty at risk.
The Allianz Global Corporate & Specialty (AGCS) report "D&O Insurance Insights - Management liability today: What executives need to know" examines both the present and future states of the D&O landscape, identifying typical and emerging exposures, claims settlement trends, as well as risk mitigation and insurance strategies to help executives succeed in this volatile space.
Download the full report

Our D&O Insurance covers current, future and past directors, as well as non-executive directors, subsidiaries, and officers of a company. The risk scenarios we cover include prospectus liability, pension trust liability and employment practices liability. And in specific cases, such as securities claims, the cover can be extended to cover the company itself. 

D&O insurance can also be used to recover defense costs and financial losses, as well as costs incurred by administrative, investigative and criminal proceedings.

The aim of D&O insurance is to provide financial protection for managers against the consequences of actual or alleged “wrongful acts”. There are different risks in different markets, but common risks include:
  • employment practices & HR issues
  • shareholder actions
  • reporting errors
  • inaccurate or inadequate disclosure (e.g. in company accounts)
  • misrepresentation in a prospectus (Prospectus liability [POSI])
  • decisions exceeding the authority granted to a company officer
  • failure to comply with regulations or laws e.g. General Data Protection Regulation (GDPR)
  • cyber risks
  • pension trust liability (PTL)
  • employment practices liability (EPLI)
  • criminal defence cost insurance
 The products and services described on this page may not be available in all AGCS locations. Please contact your local office for full information on local product availability.
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Annual survey identifying business risks

Technology is breeding new threats as well as business models. Traditional risks such as natural catastrophes continue to challenge while other threats such as cyber, neck-and-neck with business interruption at the top of the Allianz Risk Barometer 2019 for the first time, reputational risk, increasing exposure to intangible assets and volatility and consolidation in the corporate environment evolve daily.

  1. Loss of reputation or brand value belongs to the the top 10 global risks of 2019's ranking
  3. It is estimated a company could add as much as 20% of value or lose up to 30% depending on its reputation risk preparedness and management in the immediate aftermath of a crisis. 
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