Directors and officers can be held personally liable for their decisions by the company itself, shareholders, investors, creditors, employees or public authorities. Directors’ liability under the Turkish Commercial Code means that such claims may extend to their personal assets. Defence costs during investigations and litigation can in themselves represent a significant burden. These exposures apply to directors regardless of the size of the company.
Directors and Officers (D&O) Liability Insurance covers compensation claims and defence costs arising from alleged wrongful acts committed by executives in the course of their duties. Able also to protect the company where it indemnifies its directors, this structure makes it easier to attract qualified executives and to carry out decision-making with greater confidence. The policy can also be structured to include directors of the company’s subsidiaries.
Who is it for?
- Board members and managers of joint stock and limited companies
- Listed companies and businesses preparing for a public offering
- Investor-backed start-ups and fund-supported companies
- Independent non-executive directors and senior professional executives
Scope of cover
- Directors’ personal liability: compensation claims alleging wrongful acts in management
- Defence costs: legal fees in litigation, investigations and administrative proceedings
- Company reimbursement: cover for amounts the company pays to indemnify its directors
- Shareholder and investor claims: actions brought by shareholders and investors
- Supplier and creditor claims: third parties alleging loss caused by management decisions
- Regulatory investigations: representation and defence costs in investigations by public authorities
- Employment practices and reputation costs: optional extensions for employee claims and crisis communication
Scope of cover, limits and deductibles are determined by the insurer’s general and special conditions; the final scope is set out in the policy.
The Proxima Brokers approach
We analyse your company’s ownership structure, financial position, sector and regulatory environment to identify the exposures your directors face. We compare market terms on limits, scope and exclusions, and review in detail the policy wording that determines the final scope. At renewal we reflect changes in your company, and when a claim is made we manage notification and the defence process together with you.