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Directors' Liability Insurance
Protect leaders in case of fault committed in the exercise of their duties.
Executives may face personal liability and risk exposing their personal assets due to the exercise of their duties. Such claims are becoming increasingly frequent due to the growing obligations placed on executives and the increasing legal involvement in business affairs.
Companies can take out "DIRECTORS' LIABILITY" or "D&O" insurance to protect their executives when their personal liability is called into question due to a mistake (mismanagement, violation of a legal, regulatory, or statutory obligation) committed in the course of their executive duties.
Coverage for Individuals
- Defense costs and financial consequences of any claim questioning civil liability
- Defense costs in the context of a criminal investigation and/or prosecution
- Defense costs in the context of an investigation and/or prosecution before an administrative authority
- Costs related to a restrictive property measure on the executive's personal assets
- Costs related to reputational damage
- Insurable financial penalties imposed on an individual executive
Coverage for Legal Entities
- Defense costs and financial consequences of any claim questioning the civil liability of the company or a subsidiary in its role as the legal executive of a subsidiary or investment
- Defense costs and financial consequences of any claim questioning the civil liability of a legal entity acting as the executive of the policyholder
- Defense costs in the context of a joint claim against an individual insured party and the company or a subsidiary
- Company distress prevention fund
- Crisis management costs
- Non-separable fault
- Defense costs and financial consequences of any claim related to financial securities against the company or a subsidiary in its capacity as issuer.
Our clients
- The following individuals: the legal and de facto leaders (past, present, and future) of the company and its subsidiaries, representatives in the investments.
- The following legal entities: the parent company and the managing subsidiaries of a subsidiary or a stake, the legal entities managing the subscriber
Why choose Howden?
- Understanding your challenges: precise knowledge of your business sector and the risks to which companies are exposed
- Global approach: An approach that integrates advice, investment, management, and support in case of claims, all-encompassing.
- Expertise: a team of Directors‘ Liability specialists integrated into our customers’ service teams at all times
- Responsiveness & Availability: Teams who are experts in their respective fields. The individual experience of each is at your disposal to manage your exposures and optimise your insurance cover.
- Support at all stages of your development: From the initial launch through your international development, all the way to going public on a French or foreign market.
- Adaptation & Network: local expertise through our regional offices and access to our integrated international Howden One network present in over 100 countries
- Defense of your interests : a commitment to short settlement times, a solid legal approach to guarantee the protection of your rights and interests, a network of specialised claims managers in France and abroad
Examples of claims
Facts: As part of a compulsory liquidation procedure, the liquidator summoned the directors to make them bear part of the amount of the shortfall in assets caused by management errors (abusive maintenance of the business despite a loss, late declaration of the state of cessation of payments).
Items covered :
- Defence costs for directors in the context of an action for liability for insufficient assets.
- Amount of company debts payable by directors to make up for the company's shortfall in assets
Facts: A company was the subject of an investigation by an administrative authority (AMF) during which breaches of regulations by the company, its Chairman and its Chief Executive Officer were identified.
Items covered :
- Directors' defence costs
- Defence costs incurred by the Company insofar as it is assisted by the same lawyer as the directors.
Facts: A company benefited from the appointment of an ad hoc trustee by the Commercial Court to deal with its financial difficulties (negotiations with creditors, support for the director, seeking bank loans) and avoid defaulting on payments.
Items covered :
- Fees paid to the company's lawyer in connection with the procedure for appointing the ad hoc trustee
- Remuneration of the ad hoc trustee
Facts: As part of a preliminary investigation into the offences of organised gang fraud, money laundering and misleading commercial practices, a search was carried out by the DGCCRF and the judicial police at the premises of the company and its Chairman. The Chairman was also taken into custody. All sums held in the company's bank accounts and the Chairman's personal bank accounts were then seized.
Items covered :
- Defence costs incurred by the executive in connection with the criminal investigation
- Certain personal expenses incurred by the executive (instalments on the mortgage for the executive's main residence, water, electricity and internet bills, supplementary health insurance and home insurance premiums).
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