Organhaftung und D&O-Versicherung

This paper first deals with the liability of directors for a breach of their duties and ensuing liability risks. Upon closer analysis and contrary to what is widely assumed in Germany, it seems uncertain whether the mere increase of liability risks can be taken as an indication of an excessive liability regime. One key component in this context is the spreading of D&O-insurance, which has provided at least some relief for directors facing claims; on the other hand, it has created “deeper pockets” for claimants and thus fueled enforcement. Building on these aspects, the paper mainly deals with the current trends of D&O-insurance and how products offered by insurers have evolved in recent years. Company law consequences deriving from these changes are dealt with subsequently. Finally, aspects of contract design and drafting are addressed in this paper.