This form of Coverage for the liability of companies’ board members and for their board of statutory auditors, is specifically designed to release board members, auditors and some of the managers from any damage compensation request they may receive as a consequence of any offence they may have caused individually or collectively.
This kind of insurance policy is still not very common in the Italian insurance market, but finds its natural fitting in the British world, where it started and was consolidated.
Since 2003, as a consequence of recent financial scandals (including Enron, Parmalat, and the Lehman Brothers collapse), many Countries, including Italy (i.e. D. Lgs. 17 Jan 2003, n. 6: corporate law reform, operating as from 1 Jan 2004) have worked on a specific reform of Corporate Governance systems, focusing on a higher liability for corporate governance and bodies and control committees.
Thus, there is an increased request for D&O – Directors’ &Officers’ Liability policies, acquired by companies to secure corporate governance and control boards.
AllRisks offers a specific D&O coverage which stands out for its wide range, for its flexibility and because it covers a series of possible events, not usually considered by average insurances currently available on the market.