"With great power comes great responsibility"
You know who that famous phrase? No. This rotunda and accurate statement did not invent the artist Stan Lee and launched the world through Uncle Ben in comics Spiderman . The original sentence is former US President Franklin Delano Roosevelt , and gave more than 60 years ago.
However, a maximum and never goes out of fashion, but survives in time. And it has a great application in the present world. With great power comes great responsibility . Which have, for example, the directors and executives of companies that invest a lot of time and effort in developing their professional activity, although they can enjoy significant benefits, also have the pressure that comes with the position They flaunt and face numerous risks. His mistake is not just any error, a problem emerged is not a problem anymore. Everything takes on greater significance when a position of responsibility is assumed.
In order to ensure greater protection of officers and directors of companies - whether SMEs or large corporations - to the consequences of mistakes or demands of others has been created Liability Insurance called D & O (directors and officers of its acronym in English). A product that insurance companies make available to their customers, trying to cover all complicated situations that can reach high positions through in order to offer them coverage adequate.
Many risks, many others, many claims
Managers , officers, directors, managers ... are weighing charges that can benefit from an insurance of this type, seeking to ensure their personal and unlimited liability and protect your assets against third party claims arising from their business decisions. And we must bear in mind that third parties may be many and many types - from employees to shareholders through suppliers or creditors - and their demands can not compromise the continuity of the company or society, but endanger the personal assets affected.
In that scenario it is where it makes sense Liability Insurance D & O, which seeks to cover the risks taken and the responsibility of those charges to the claims . Claims which may be of many types: workplace harassment or sexual harassment, by misleading advertising, management errors in the day, due to lack of confidence, lack of payment to suppliers or creditors conflict with the administration and even for really serious situations such as bankruptcy proceedings of society where the personal assets of directors and executives are dangerously exposed
It should also be noted that the policyholder of the policy in insurance this area is the company or organization, whether a small business or a large organization, and insured persons are natural persons who are managers and executives ( including employees when acting with managerial functions).
more frequent coverage
The most frequent coverage that presents a Liability Insurance D & O, beyond protecting against claims against the insured person, are these among others: defense spending with freedom of choice of law by the insured, fines and administrative sanctions civil and criminal bonds and guarantee insolvency expenses, advertising expenses, expenses risk management prior to a claim form, costs extradition ...
And it is that the economic losses that can deal with a manager or administrator in a situation of this kind are very high. With insurance this area is support the defense costs for directors and officers (court costs, fees, etc.) and the payment of compensation , if any, that would require the courts. Most expenses under these policies are produced by defense spending (as very expensive and very lengthy procedures occur in time)
As main coverages we can highlight the already mentioned liability for negligent acts, legal expenses , deposits and administrative penalties as well as others such as reimbursement to society. But a safe and may also offer additional coverage as the costs of restitution image or risk management, claims for labor disputes or violation of employment practices, damage to natural resources, the extension of protection to individuals or companies close to the insured or members / affiliates of this ...
Study coverage (and, of course, the exclusions ) of D & O insurance we are mulling is an essential step that senior officials must carry out before betting on one company or another. And it is that great power comes great responsibility . The important thing is good advice before deciding coverage and capital and this is always good to have an insurance agent.