Koristi in (prezrte) slabosti zavarovanja odgovornosti članov organov vodenja in nadzora gospodarskih družb

slovenian

2022

volume 48, issue 3/4

company indemnities   D&O deductible insurance   D&O insurance   deductible   directors and officers liability insurance   due diligence   moral hazard

Lexpera d. o. o.
(Obvezni izvod spletne publikacije)

D&O insurance is a fairly popular form of an insurance product among foreign and domestic public companies. With their help, legal and economic protection is provided to directors and officers, as well as to companies themselves, in cases of claims of their liability for damages, which may occur due to breaches of due diligence in representing or supervising the company. The advantage of this type of insurance is that it also includes the ability of companies to attract quality managers and provide conditions for them to effectively accept the business risks necessary for successful operations. The purpose of this paper is to point out that D&O insurance - despite its undoubted benefits - is by its very nature accompanied by a number of weaknesses and risks that companies should carefully consider and take measures to manage before deciding on an insurance. The origin of D&O insurance weakness is rooted in the moral hazard of directors and officers, who act as fiduciary representatives of the company on the one hand and policyholders on the other hand when making decisions on concluding an insurance contract. Based on the analysis of foreign legal and economic theory, the paper tries to present some negative consequences of moral hazard and the possibilities for its greater management at the level of individual companies and other stakeholders (legislator, insurance companies, professional public, etc.).

30.08.2022