Five reasons that demonstrate the importance of having liability insurance for executives
Having executive liability insurance is a very important asset so that those who run businesses in any field can enjoy complete peace of mind.
BY RRHHDigital, 04:15 – 26 July 2021
The directors’ liability insurance is the most suitable solution to cover the costs of legal defense in the event of acts of irresponsibility in the exercise of their functions by directors, directors, directors or any other figure prevailing in the hierarchy. companies.
This policy therefore deals with the compensation that the law requires to deal with this type of conflict.
The importance of insurance for executives
As these profiles have to make important decisions in their daily lives, some of them can give rise to claims for negligence due to the management carried out, whether due to a lack of supervision, occasional errors, ‘scams, breaches of contracts, etc. and end up affecting your personal wealth or that of your family. It therefore appears to be an essential resource for management positions in entities that wish to be serene in their professional performance.
These insurances, also called D&O, aim to respond economically to possible damages caused by higher charges, for which the law may even require you to pay with your personal property.
The five most common situations in which it is “vital” to have a D&O
Third-party damages claims by senior levels are not so unusual, with the following scenarios being the most common for those served by executive liability insurance:
Bad strategic decisions No article in the regulations in force Unequal employment policy Incorrect approval of annual accounts Reprisals from disgruntled employees, who seek the slightest loophole in their dismissal (sometimes even with fabricated testimonies) to endanger employment fairness of leaders.
Hiscox, the perfect solution to take out civil liability insurance for executives
Hiscox stands out from the rest of the market offers by its ability to adapt to the volume and characteristics of each company, providing its service with the same efficiency to small SMEs and large multinationals.
A flexible subscription, the unification of different covers in a single contract or a quick and personalized quote are other very important assets of this insurer of international prestige.