The events surrounding the Signa insolvency and the personal liability of former executives shine a harsh light on an issue that is also becoming increasingly controversial in Switzerland: manager liability and protection through D&O insurance.

In 2024, Switzerland recorded a record number of over 11,500 corporate insolvencies – an increase of 15% over the previous year.

In this environment, pressure on boards of directors and management is mounting, and wrong decisions or omissions can quickly threaten the very existence of a company.

D&O insurance is supposed to offer protection here – but as the Signa case shows, insurance coverage is not guaranteed. Disputes over disclosure obligations, exclusions, and criminal allegations are on the rise. In Switzerland, too, it is becoming apparent that the presumption of innocence does not protect against reputational damage – and not always against costs.

What does this mean for Swiss/Liechtenstein executives?

• Transparent risk communication is becoming mandatory.

• The contractual details of D&O policies must be reviewed regularly.

• Criminal defense components are becoming increasingly important.

The Signa case is a wake-up call – for Switzerland too. Anyone in a position of responsibility today must protect themselves professionally, not only strategically but also in terms of insurance law.

How good is your D&O coverage? And how are you dealing with the growing uncertainty?