8+ D&O 保険社外取締役 Article

取締役の訴訟リスクに対応する「会社役員賠償責任保険（D&O保険）」とは Forbes JAPAN（フォーブスジャパン） from forbesjapan.com

Introduction

As a non-executive director of a company, you may think that you are immune to legal issues that can arise from corporate decisions. However, this is not the case. Non-executive directors can be held liable for their actions in the boardroom, which is why directors and officers (D&O) insurance is essential.

What is D&O Insurance?

D&O insurance is a type of liability insurance that protects directors and officers of a company from legal action taken against them for decisions made in their capacity as corporate leaders. This insurance can cover legal fees, settlements, and damages incurred by the individual.

Why is D&O Insurance Important for Non-Executive Directors?

Non-executive directors are not involved in the day-to-day running of a company. However, they still have a legal responsibility to ensure that the company is run in the best interests of its shareholders. If a decision is made that causes financial loss or harm to the company, non-executive directors can be held liable.

The Risks for Non-Executive Directors

Non-executive directors can face legal action for a variety of reasons, including breaching their duty of care, failing to act in the best interests of the company, and providing inaccurate or misleading information. Legal action can be brought by shareholders, employees, customers, or regulators.

What Does D&O Insurance Cover?

D&O insurance can cover legal fees, settlements, and damages incurred by the individual. It can also cover the legal fees of the company if it is named as a co-defendant in a lawsuit. However, it is important to note that D&O insurance does not cover intentional misconduct or criminal acts.

How Much Coverage Do You Need?

The amount of coverage needed depends on the size and complexity of the company. It is important to work with an insurance broker to assess the risks and determine the appropriate level of coverage.

Choosing the Right Policy

When choosing a D&O insurance policy, it is important to consider the policy limits, exclusions, and deductibles. It is also important to work with a reputable insurance provider who understands the unique risks faced by non-executive directors.

Conclusion

D&O insurance is essential for non-executive directors who want to protect themselves from legal action arising from their decisions in the boardroom. It is important to work with an insurance broker to assess the risks and determine the appropriate level of coverage. With the right policy in place, non-executive directors can have peace of mind knowing that they are covered in the event of legal action.