Every year hundreds of directors and shareholders from a Limited Liability Company (in the Netherlands, these companies are designated using the abbreviation BV) are held personally responsible for the tasks they did not do correctly. The number of claims that can be honoured is significantly lower. However, the financial consequences of such a claim can ruin one’s life. Legal support and the time it takes to plead your case in court can result in high costs.
A Directors liability insurance covers:
- All members of the Board or Board Directors.
- Legal support.
- Reimbursement of legal fees.
- Any claims after resignation.