Directors-Officers on Pitsas Insurance

Directors and officers insurance in Cyprus in 2025. Affordable directors and officers insurance quotes.

Fri, 15 Dec 2023 00:00:00 +0000

Directors and officers insurance Cyprus

Sometimes known as D&O insurance, directors and officers insurance protects managers and executives of a company for committed or alleged wrongful acts in managing a company.

This insurance product, which commonly protects the company as well as individuals, covers legal fees, settlements, and other costs associated with D&O claims.

Directors and officers insurance is an indispensable insurance product in Cyprus, and we aim to help you find the best and most affordable contract in Cyprus throughout this guide.

Directors and officers liability insurance (FAQ)

Mon, 19 Jul 2021 17:00:00 +0000

Directors & Officers Liability insurance (also referred to as D&O insurance) offers essential coverage for companies and non-profit organisations of all sizes against legal claims made by clients, investors, employees and other parties. Here are some of the most common questions about it answered.

1.What exactly is D&O Insurance?

Directors & Officers Insurance covers legal liabilities and assets in case the directors and officers in a company are sued because of alleged or actual wrongful acts committed within their positions. Errors of omission, misstatement or breach of duty may all be covered under D&O policies

Directors and Officers Liability Insurance in Private Companies

Tue, 17 Dec 2019 00:00:00 +0000

The Directors and Officers Liability Insurance does not only apply to state-owned companies. The owners of family businesses are sometimes under the false impression that they do not need coverage by this insurance. Of course, once they are forced to deal with a claim and bear the defense expenses; or even worse, when they have to pay compensations or a settlement amount, they quickly change their mind.

The directors of private companies may be sued by a number of claimants for various reasons. In fact, when the assets of a family are bound to a private company, the uninsured loss can be catastrophic. When the directors are sued, the first line of protecting their personal assets is coverage by the company. When the company belongs to the directors themselves, however, the coverage is actually provided out of their own pockets. Depending on the size of the claim and the depth of their pockets, their omission to insure the company could even lead to bankruptcy. Besides, when something goes wrong with the company, the directors are often sued alongside the company as co-defendants and then they have to assign the case to a lawyer who will handle their defense, and they will have to assume any personal liability attributed to them. If the company does not have the resources to cover the director or is not entitled to cover him, then insurance becomes even more imperative.

Directors and Officers Liability Insurance in State-Owned Companies

Tue, 17 Dec 2019 00:00:00 +0000

The rapid expansion of the Directors and Officers Liability insurance, known as D&O, in the political world is due to various factors including:

The unlimited liability of the company’s officers
The influence of the European Union Directives
The formal and strict environment of corporate governance
The modern views attributing liability to the companies’ officers and seeking more transparency in the accounts of companies
The globalization and the wide publicity of failures and company scandals.

Moreover, directors understand the limitations of companies to provide coverage through the Articles of Association. Even if the company has a contractual obligation to provide coverage, the director might have to go through a traumatic experience when he discovers how fast his colleagues can abandon the company.

Financial Institutions Corporate Guard Directors and Officers Liability

Wed, 28 Nov 2018 00:00:00 +0000

The Insurance Covers under this policy are afforded for Claims first made against an Insured during the Policy Period and reported to the Insurer as required by this policy.

In consideration of the payment of the premium the Policyholder and the Insurer agree as follows:

1.1 Management Liability

The Insurer will:

pay to or on behalf of each Insured Person any Loss except to the extent that the Insured Person has been indemnified by the Company for the Loss
reimburse the Company for any Loss for which it has indemnified an Insured Person.

1.2 Special Excess Protection for Non-Executive Directors

Limits and Retentions on Directors and Officers Liability

Wed, 28 Nov 2018 00:00:00 +0000

Limit of Liability

The total amount payable by the Insurer under this policy shall not exceed the Limit of Liability where the Insurer’s liability is excess of the Limit of Liability. The Insurer shall have no liability in excess of all such limits, irrespective of the number of Insureds or amount of any Loss. Each Sublimit of Liability specified in the Schedule is the maximum the Insurer shall pay for the cover to which it applies and is part of the Limit of Liability.

Directors & Officers Insurance

Sun, 27 Aug 2017 00:00:00 +0000

Surge of Lawsuits

According to the advisory company Towers Watson & Co during the decade 2001 – 2011 in USA the 69% of the public traded companies and the 21% of the private companies have faced a shareholder’s case suit.

In Cyprus, the financial crisis of 2013 created inevitably favorable conditions for the upsurge of lawsuits. Pointedly, the most renowned of these conditions are:

The commitment for social justice instigates government prosecutors to the intensification of investigations for the disclosure of scandals and wrongful acts.
Surge of competition. Companies are extremely suspicious against their competitors and they continuously try through complaints to incriminate them for unfair competition practices.
The tax system reformation will exercise pressure to the accounting offices and mistakes will be unavoidable
The insolvency and bankruptcy of companies due to financial problems will lead shareholders and creditors to fill a lawsuit.
The liquidity shortage will lead many companies to the breach of payment deals.
The expansion of cooperation between Cypriot companies with foreign will lead to the export of liability to foreign jurisdictions.
Legal firms are exposed to extreme risk due to their practice to become part as non-executive (nominee) directors to international companies whose activities not totally apprehend.

Definition of the D&O Insurance