Avéro Achmea · compared independently · advice from Finass
Directors' and officers' liability insurance for a VvE through Avéro Achmea
Directors' and officers' liability insurance protects the private assets of the volunteers who make up the board of a VvE (Dutch owners' association) against complaints about their decisions, not against damage to the building.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
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A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
A VvE board usually consists of residents who take it on alongside their work. Even so, the same standards apply to them as to the directors of any other legal entity: under Article 2:9 of the Dutch Civil Code they must perform their duties properly, and where they are seriously at fault they can be held personally liable. The liability then reaches their own savings and home.
The loss at issue here is almost always pure financial loss: money that is lost without anything being broken or anyone being injured. Think of a reserve fund kept too low, an insurance policy cancelled by mistake, a contract signed without a mandate from the general meeting, or a decision later set aside by the court.
This policy stands apart from the the VvE's liability insurance, which covers injury and property damage to third parties. When comparing, Finass looks above all at the retroactive and run-off periods, because a complaint against a board often only comes to light years after the decision.
The structure of the cover in three parts, with an overview per situation below.
Basic cover
The basic cover insures the core of your directors' and officers' liability insurance for a VvE. We show what Avéro Achmea and other insurers offer within it.
Personal liability of directors
Protection of personal assets
Defence & representation costs
Mistakes by fellow directors
Extended cover
As well as management errors, also claims from shareholders, the insolvency administrator, the Belastingdienst (the Dutch tax authority) and regulators.
Claims from shareholders & the insolvency administrator
Claims from the insolvency administrator (bankruptcy)
Improper management
Complete package
The most complete cover. We compare Avéro Achmea's extended version with the market.
Agency workers, interns & volunteers
Defence & legal costs
Retroactive cover (about 3 years as standard)
Retroactive cover (prior risk)
What is covered
Situation
AVB
BAV
Cyber
Injury to a visitor or customer
Yes
No
No
Damage to a client's property
Provided it is declared
No
No
Financial loss caused by an advisory or calculation error
No
Yes
No
Downtime after a ransomware attack
No
No
Yes
Data breach involving personal data
No
Provided it is declared
Yes
Damage to property in your care
No
No
No
What we do
What we do
At Finass
Direct with Avéro Achmea
Comparison across several insurers
Yes
No
Advice based on your own situation
Yes
Sometimes
One point of contact for claims
Yes
Sometimes
Cancellation with your current insurer arranged
Yes
No
We determine whether Avéro Achmea is the best choice
Yes
No
Advice fees for you as a customer
No
No
This overview concerns our service, not the cover. What is actually covered is set out in the policy conditions and on the insurer's insurance card (verzekeringskaart); you receive both before you take out cover.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
Improper performance of duties under Article 2:9 DCC
The board manages, but the general meeting decides. Anyone who acts outside the mandate, carries out a decision contrary to the deed of division or fails to inform the meeting can be seriously at fault under Article 2:9 of the Dutch Civil Code. There is a risk towards third parties as well: a supplier left unpaid because the board entered into obligations without cover in the budget can hold a director personally liable under 6:162 DCC.
Reserve fund, long-term maintenance plan and insurance
The classic claims against a VvE board concern money that is not there. A reserve fund that has not been topped up for years while the long-term maintenance plan announced a roof replacement leads to an unexpected extra contribution per owner. The same applies to a buildings policy cancelled through a missed payment when a fire breaks out. What the owners hold against the board is then not the loss itself, but the fact that they have to bear it.
Claims-made: the moment of the claim counts
Most directors' and officers' liability covers work on a claims madebasis. What is decisive is not when the decision was taken, but when the claim comes in. If a board changes, the run-off cover is the most important part of the policy for the departing directors. Conversely, the retroactive cover determines whether complaints about decisions from before the start date are included. Circumstances already known at the outset fall outside the cover.
What stays outside the policy
Excluded are intent, fraud and self-enrichment, for example a treasurer taking money from the VvE's account. Also excluded: injury and property damage, which belong on the association's liability insurance; fines and penalty payments imposed on the VvE itself; and arrears of service charges or premiums that simply still have to be paid. Damage caused intentionally is moreover excluded by law under 7:952 DCC.
Retroactive cover (prior risk)
Retroactive cover (prior risk) Included for your staff during work.
Defence & legal costs
What does your premium depend on?
Number of apartment rights. More owners means more parties who can challenge a decision of the board.
Professional managing agent or self-management. An external management firm generally applies the administration and the decision-making rules more strictly.
Size of the annual budget and the reserve fund. The amount the board manages determines the size of a possible financial complaint.
Mixed use. Commercial units in the complex lead to conflicts of interest over allocation formulas and maintenance.
Retroactive and run-off periods. The further back and the longer after resignation the cover runs, the more heavily that counts in the premium.
Current disputes and deferred maintenance. Known conflicts or a long-term maintenance plan that has not been carried out increase the chance of a claim.
Insurers weigh these details differently. That is where your saving is.
How we arrange it
You request a quoteWe take stock of your activities, turnover and wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
I am a volunteer; can I really be personally liable?
Yes. The law makes no distinction between a paid director and a resident who performs the role unpaid. The court does take into account what may reasonably be expected of someone in that position. That does not alter the fact that you first have to pay a lawyer to conduct that defence, and with this policy it is precisely those defence costs that often make up the largest part of the payment.
Does a discharge granted by the general meeting already protect me sufficiently?
A discharge works only towards the VvE itself and only for what was apparent from the documents. An individual owner or an outside creditor is not bound by it. If a problem only comes to light later, for example with a roof replacement that turns out far more expensive than budgeted, a discharge granted earlier offers limited certainty in practice.
Does this policy cover damage to the building?
No. Physical damage to the complex falls under the buildings insurance (opstalverzekering) and injury or property damage to third parties under the association's liability insurance. This policy pays only for financial loss arising from a complaint about acts or omissions in management, plus the cost of legal defence against that complaint.
What happens if I resign as a director?
Your conduct lies in the past, but a claim can come years later. Because the cover runs on a claims-made basis, what is decisive is whether the policy still exists at the moment of the claim and whether run-off cover has been agreed. Arrange this before you resign and record in the minutes that the general meeting is continuing the insurance.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
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