Hiscox · compared independently · advice from Finass
Directors' and officers' liability insurance through Hiscox
For the company with outside shareholders or investors: the form we use through Hiscox puts the emphasis on defence costs and on claims by providers of capital and by regulators.
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.
Work out for yourself what it would cost.
Enter your details; you will receive a proposal within one working day.
We compare the offerings of several insurers
An adviser checks whether the cover suits your situation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
<p>As soon as there is outside capital in the business, a director's claims profile changes. Alongside the insolvency administrator, shareholders and investors come into the picture, reviewing after the event a decision on dilution, an acquisition, the information provided in a funding round or a forecast that disappointed. The basis is then usually Article 6:162 DCC.</p>
<p>What weighs most heavily in that situation is not the eventual damages but the defence costs. A claim or an investigation by a regulator costs money long before it is established whether you did anything wrong. In most policies those costs come out of the same sum insured as the loss itself. The level of that sum is therefore a real choice.</p>
<p>We are not tied to Hiscox and compare this set-up with other providers, among other things on the treatment of subsidiaries and on what happens in a takeover. If you manage a foundation, association or cooperative without outside providers of capital, look at the form available through Hienfeld.</p>
The structure of the cover in three parts, with an overview per situation below.
Basic cover
The basic cover insures the essentials. We show what Hiscox and other insurers offer here.
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 Hiscox's extended versions 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 Hiscox
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 Hiscox 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.
Shareholders and investors as claimants
A minority shareholder who feels he was prejudiced in a share issue, or an investor who claims the figures at the funding round were too optimistic: those claims are directed straight at you as a director, through Article 6:162 DCC. They often come years after the decision. So record your decision-making and the information you relied on. That is your first defence, even before the policy.
Defence costs run ahead of the judgment
Even a claim that ultimately proves unfounded costs legal and investigation fees. Those are generally paid straight away, but they do come out of the sum insured; in lengthy proceedings, less is then left for the loss itself. Also note whether the costs of an internal investigation or of appearing before a regulator fall under the cover. Fines themselves are never insurable.
Where the employer's risk stops
Claims by employees about appointment, dismissal or unequal treatment can fall under this policy as acts of management. But injury in the workplace does not: that runs through the duty of care in Article 7:658 DCC and, for road use in the course of work, through Article 7:611 DCC. You need employer's liability cover for that. This policy does not pay for injury to your own staff.
Subsidiaries and a takeover
If you also manage foreign or newly incorporated subsidiaries, they must be on the policy. An entity that is not named is not insured. Report new participating interests on acquisition. On a takeover of your business, cover for new facts often stops on the transaction date, while claims about the period before it can still come in for years. A run-off policy is then needed. Arrange it before completion.
Retroactive cover (prior risk)
Retroactive cover (prior risk) Included for your staff during work.
Defence & legal costs
What does your premium depend on?
Balance sheet total and annual turnover. The financial size of the group is the main basis of calculation for this cover.
Shareholder structure. One managing director and majority shareholder or a group of investors and minority shareholders makes a big difference.
Sector and activities. Supervision of the sector and the degree of regulation determine the chance of investigations and claims.
Number of directors and supervisory board members. The size of the group of insured persons, including directors of subsidiaries insured as well.
Sum insured and excess. The sum also carries the defence costs. The excess generally applies per claim.
Foreign entities and area of operation. Subsidiaries or establishments outside the Netherlands bring a different jurisdiction and a different rate with them.
Insurers weigh these details differently. That is where your saving is.
How we arrange it
You request a quoteWe take stock of your situation, your risk and your 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.
Yes, and with this cover it is often the most important element. Legal and investigation costs are generally paid as soon as a claim is made, even where it later proves unfounded. Do note that these costs come out of the same sum insured as any damages. Fines and penalty payments imposed on you personally are not insurable.
Are my subsidiaries insured as well?
Only if they are on the policy or fall within the definition of the insured group. A newly incorporated or acquired entity must be reported; until then its directors are not covered. With foreign subsidiaries the jurisdiction also comes into play: a claim brought there does not automatically fall under Dutch cover.
What happens if my business is taken over?
A change of ownership is a material change for this policy. Cover for new facts often ends on the transaction date, while claims about the period before it can still follow for years. A run-off policy is needed for that, and you must arrange it before completion. Afterwards it cannot be obtained, or only on unfavourable terms.
Does the policy cover fines from a regulator?
Not the fine itself. An administrative fine is not insurable under Dutch law. What can be covered are the costs of defence and of your representation during an investigation. Check whether the policy expressly mentions those investigation costs, because not every provider does. We compare that point at Hiscox and at other insurers.
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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