Whatever the legal form and status of the entity, the members of the Board of Directors are subject to various liability risks under Luxembourg law.
As a best practice, ILA strongly recommends to its members to assess, for each directorship, the existing insurance coverage as well as the need for additional coverage.
Generally speaking, an entity should provide its directors with insurance coverage. It is important that the director understands the terms and conditions of such insurance, notably the limitations, exclusions, renewal process, etc. Despite such insurance provided by the corporate entity, the director might wish to have additional insurance coverage, which would be personal to her or him, and which she or he can have a direct access to in case of need.
In order to facilitate the search for such an insurance policy for its members, ILA has identified the insurance companies listed below as offering insurance coverage to individual directors in Luxembourg. Please note that this list is not necessarily exhaustive but represents the current knowledge of ILA about the products available on the market.
Please be aware that it remains the exclusive responsibility of the director to assess her or his needs, and to choose the product that will best fit these needs. It is also the responsibility of the director to ask directly the insurer/broker for an individual offer and quote and to make her or his own informed choice. ILA is neither providing advice on insurance contracts nor otherwise proposing any insurance contracts. The only purpose of ILA is to draw its members’ attention to the importance of ensuring they have adequate insurance coverage and effective access to such coverage for their directorships.
AIG offer for ILA members
AIG already provides insurance coverage to all ILA members.
In cooperation with the insurance broker Gras Savoye, AIG has developed an additional and more extensive specific insurance offer for all ILA members.
The specificity of this policy is that the policy holder and the assured are the physical person holding the mandates.
AlliA Luxembourg has set up with Foyer Assurances a tailored-made insurance policy covering director’s liability without any retention/deductible and with a broad coverage of any type of mandates without any pre-set criteria.
Talisman S.À.R.L. Offer
The Talisman S.à.r.l. policy provides individual Directors & Officers (D&O) insurance, to help protect an executive’s personal wealth and reputation.
Complementary to an entity D&O policy, ILA members can purchase the Talisman Individual Executive Protection (TIEP) policy at an exclusive rate. The policy gives instant response and flexible support, is Luxembourg compliant and subject to Luxembourg law.
Talisman S.à.r.l. is an independent commercial insurance broker in Luxembourg, supervised by the Commissariat aux Assurances (CAA). We tailor commercial entity and business executive insurance solutions.
8 prudent steps for executives/directors
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