D&O
The insurance of liability of Members of Company Authorities, also known as D&O, is to protect the personal assets of the members of company assets in the case that they make the decisions that expose the company to financial losses and/or put the stockholders' interests at risk. The insurance protecting the company authorities from that type of risk improves the comfort of their work and may indirectly improve their performance.
However, one should be aware that a D&O policy applies to the damage resulting from failure by management board members and other employees in managing positions to perform, or to perform properly, their obligations. Therefore, it does not protect against the effects of taking typical business risks which, by definition, is uninsurable. The general terms and conditions of insurance are based on the claims made trigger, under which the protection covers the claims that have been raised against the Insured and reported to the Insurer in the period of insurance and in the additional period, irrespective of when the improper activities, associated with them, have been undertaken.