Liability & Professional Risks
Directors & Officers Liability
Directors & officers liability concerns the personal consequences that people making decisions on behalf of a company may face.
What is it?
This is cover concerning the personal liability of directors, board members and senior officers for decisions taken in the course of their duties. It concerns claims that may be raised by shareholders, investors, regulators or other stakeholders. The exact content of each solution differs by company and insurer, and is always confirmed case by case.
Who is it for?
It is relevant to directors and board members of companies of any size, officers of companies preparing for investment or acquisition, and non-executive members involved in decision-making without day-to-day management involvement.
Legal position
Is it compulsory in Cyprus?
Not generally compulsory
Directors & officers liability cover is generally not compulsory by law in Cyprus. Contractual requirements may apply, for example from investors or in financing agreements. Vesta can help clarify what applies to your circumstances.
General information only. Requirements can change and depend on your activity — Vesta can help clarify what applies to your circumstances.
When might you need it?
You set up a company or appoint new members to the board.
The company undertakes a capital raise, acquisition or significant reorganisation.
The company operates in a regulated sector subject to increased oversight.
Investors or shareholders request assurance before becoming involved in the company.
These are illustrative circumstances, not a description of policy terms, conditions or exclusions.
Why review this cover?
A disputed management decision can lead to claims directed personally at directors and officers, regardless of the company's financial position. A periodic review helps establish whether the cover matches the governance structure, the size of the company and the markets in which it operates.
The Vesta approach
Understand first, then solutions.
Before discussing solutions we want to understand your company's governance structure, its sector of activity and any upcoming changes such as investment or acquisitions. We then look at the obligations that may apply and the points worth reviewing, so your decision is based on a genuine understanding of your circumstances.
Next step
Let's look at your circumstances.
Tell us how things work in practice and we will explain what is worth reviewing before any solution is discussed.
Prefer to speak with us?
If you would rather talk it through, tell us a little about your business and we will come back to you.
Related insurance areas
All business insurance