D&O insurance – management and supervisory boards

In capital companies (Sp. z o.o. and S.A.), members of the management board, supervisory board, audit committee and liquidators are liable to the company with all their assets for damage caused by their actions or omissions contrary to the law or the provisions of the articles of association. The source of liability of the above-mentioned persons may be the act, articles of association, regulations, resolutions, management contract or employment contract. They are also liable for damages caused to third parties, including shareholders.

D&O (Directors & Officers) insurance protects managers against claims or proceedings related to their function.

The D&O policy may cover, among others:

• the personal responsibility of executives for their own errors and omissions
• damages for the wrongful act of an officer that the Company is obliged or entitled to pay
• protection against claims by employees against the Company as an employer for violation of their employee rights
• court defense costs to be incurred in the event of the Company committing any actual or alleged unlawful act
• protection of the effects of an unlawful act committed by the Company (or by a member of its management) related to the broadly understood employee benefit program