Increased offer on the D&O liability market
In the current economic context, in which each internal problem of a company is strongly amplified by the adverse conditions in the financial environment, the potential of the professional liability insurance is growing, once companies realize the need to cover damage caused by managers or once they are demanded by third parties to conclude such a policy.
Under these circumstances, GROUPAMA Asigurari has recently completed its portfolio with the directors & officers liability insurance.
D&O (Directors & Officers Liability Insurance) is a product that covers financial losses caused by the fault (error, negligence and omission) of insured persons - they can be managers and directors of companies, and generally employees with decisional positions - to shareholders, investors, employees, customers, competitors and other third parties for which they are legally responsible.
"Insurance is a safety net for a company in sensitive situations, such as change of ownership, capital increase, a growing competition or investigations and regulatory checks", said Denis ROUSSET, General Manager of GROUPAMA Asigurari.
This product addresses mainly to small and medium enterprises, more than 3 years old, that have recorded net profit in the last 2 years of activity, are not banks and financial institutions and whose maximum turnover is EUR 30 million, the insurer announced. Also, insurance is concluded for a period of 12 months and covers activities performed in Romania, as the policy is governed by the Romanian law.
"D&O insurance from GROUPAMA Asigurari covers the financial losses that are a result of wrong management decisions, the responsibility of the manager in case of bankruptcy or insolvency of the company caused by poor management, costs in civil lawsuits in Romania, and also supports the expences of defending the manager in a court of law".
For more information on the new product or to view some hypothetical situations, GROUPAMA Asigurari has launched the website http://d-o.groupama.ro.
Romania is the first EU country in which this insurance became mandatory.
Introduced in December 2006, the legislation requires all managers of companies to have a D&O insurance. In this category there are included public or private companies with Romanian shareholding or subsidiaries registered in Romania whose shares are fully or partially owned by foreign companies.
Author: Andreea IONETE
on 25.02.2010
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