Managers bear responsibility—and are personally liable. D&O insurance (Directors & Officers) protects managing directors, board members, and supervisory board members against civil claims for damages in the event of breaches of duty. But what happens when an allegation turns into a criminal investigation?
Criminal defense coverage only with restrictions
Many D&O policies include what is known as partial criminal defense coverage. This covers the costs of defense—but only if the criminal proceedings are related to an insured breach of duty that could lead to financial loss. Proceedings for purely administrative offenses, compliance violations, or labor law offenses are often not covered.
In addition, insurance coverage ends at the latest with a final conviction. Fines, penalties, or damage to reputation are generally not insured.
Supplementary protection through special criminal defense insurance
For comprehensive protection, we recommend supplementary special criminal defense insurance, which also includes preventive advice, defense in preliminary proceedings without civil law implications, and reputation management. This can be crucial, especially in complex commercial criminal law cases.
Low-liability structures as strategic protection
In addition to insurance coverage, legal structuring via low-liability legal entities – such as foundations, institutions, or companies in Liechtenstein or Switzerland – is also an option. If structured correctly, these can not only minimize liability risks, but also be integrated in a way that makes sense from a tax and asset protection perspective.
Maier provides comprehensive advice on protecting your personal liability risks and your assets (asset protection).