Why is D & O suddenly more important?

    • The increase in successful litigation against directors and officers has led to an increased need for insurance protection. Whilst the directors and officers of most large Spanish companies are now covered by directors & officers liability insurance, it is the small to medium sized companies that face all of the same risks yet do not protect themselves adequately.
    • Tighter European regulation in the areas of health & safety, environment, employment and corporate governance is fuelling litigation against company directors and officers.
    • Whilst there are no reliable statistics for Spain, it is clear that claims are on the increase in Europe, with over 30% of companies recently surveyed in the UK having made a claim on their policy.
    • Claims against directors & officers can be brought by an ever-widening group of people, including employees, customers, suppliers, creditors, banks, regulatory groups, shareholders etc..
    • Typical incidents giving rise to litigation are widespread, and include poor management, lack of supervision, wrongful termination, discrimination, harassment, dishonesty, fraud, financial reporting, health and safety at work etc...
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