Directors and Officers (D&O)
Protects the personal assets of those who manage or direct the company against claims arising from their management decisions.
Why take out D&O cover
You answer with your own assets
A director is personally and unlimitedly liable for damage caused by their management decisions. The company has limited liability; the person running it does not.
Defending yourself costs money
Even if the claim is ultimately dismissed, the lawyer, court representative and expert reports have to be paid for from day one. The policy advances these costs.
The role doesn't expire
Claims can be made over decisions taken years earlier, even after leaving the role. The cover is designed precisely for that.
What it covers
The specific cover and its limits depend on the company and the option you take out. At Retuerto y Asociados we set them out in writing before you decide.
Legal expenses
Lawyer, court representative and expert costs from the moment the claim is notified, without waiting for the outcome of proceedings.
Compensation
The amounts the insured party must pay as the party liable for their management decisions, up to the limit taken out.
Bonds
Setting up the civil bonds a court may require to secure the outcome of proceedings.
Claims from the company and shareholders
Corporate and individual liability actions brought by the company itself, by its shareholders, or by affected third parties.
Administrative proceedings
Assistance during inspections and proceedings brought by public bodies. It does not cover the amount of fines, which are personal and non-transferable.
Insolvency-related liability
Defence against actions arising from the classification of insolvency proceedings and from claims for company debts.
Who is covered
Both formally appointed and de facto directors, managers with executive functions and, depending on the policy, their heirs and spouse.
Cover after leaving the role
An additional period to notify claims that arrive after leaving the post or after the policy ends.
Like any liability policy, it does not cover wilful misconduct or unlawful gain by the insured party: if a final court ruling establishes this, the insurer will claim back what it advanced.
Why the company's liability cover isn't enough
The company's general liability policy covers damage the business's activity causes to third parties: a customer who slips, a defective product, poorly executed work. The company is liable.
D&O covers something different: a claim brought personally against the decision-maker. It's not a claim over physical damage, but over a management decision — a loss-making deal, a neglected tax obligation, poorly handled insolvency — and the person is asked to answer with their own assets.
That's why the two policies exist side by side. One protects the company's coffers; the other, the director's home.
Who should have it
It isn't compulsory, but there are situations where going without it is hard to justify: companies with shareholders who take no part in day-to-day management, businesses with bank financing or investors, boards with external directors, and any company in a regulated sector.
The same goes for small family businesses, where the director is usually the one with the most personal assets at stake and where disputes between partners more often than people think end up in a liability claim.
At Retuerto y Asociados we size the limit to match the balance sheet, the corporate structure and the sector, and we scrutinise the exclusions closely, since that's where this product is really decided.
Frequently asked questions
Does the company pay for it, or the director?
Usually the company pays the premium, even though the people insured are the individuals who manage and direct it. It's an accepted and common arrangement.
Does it cover fines and penalties?
No. Administrative penalties are personal and no policy can cover them. What it does cover is the defence and assistance during proceedings.
What if I leave the role?
Claims can be brought over earlier decisions for years afterwards. That's why these policies include a subsequent notification period; we always check what each company offers before recommending it.
Does it cover fraud by the director themselves?
No. Wilful misconduct and unlawful gain are excluded. The insurer may advance the defence costs, but if a final ruling establishes fraudulent conduct, it will claim back what it paid.
What an Insurance Broker really is
A broker is the expert who acts as an intermediary between the insurance company and the client, representing the insured party and their interests, not the insurer exclusively.
We are the only professionals legally qualified to advise with strict independence and impartiality from insurance companies.
- We compare the marketAdvice based on an objective analysis of contracts from a sufficient number of insurers.
- It costs you nothingThe broker is paid by the insurer in commissions. In principle, the service costs the client nothing.
- We handle everythingFrom taking out the policy to the claim, if one happens.
- We look after your interestsBefore the insurer, just as a lawyer would.
Other business insurance
Industrial multi-risk
Facilities, machinery and stock, plus loss of profits if a claim affects the business.
View cover
Liability
General, employer's, product and completed-works liability, tailored to the sector and turnover of the business.
View cover
Cybersecurity
Covers the costs and business impact of incidents arising from a cyberattack.
View cover
Environmental Liability
Covers the obligation to prevent, avoid and remedy environmental damage imposed by Ley 26/2007 (Spain's Environmental Liability Act).
View cover
Credit and Surety
Credit insurance guarantees payment if the debtor becomes insolvent; surety guarantees you meet your own obligations.
View cover
Vehicle fleet
All the business's vehicles under a single policy, with unified terms and renewal.
View coverWhat people tend to believe, and what actually happens
Five ideas we hear often, and that end up costing dearly on the day of a claim.
"Going it alone works out cheaper."
A broker costs you nothing: the insurer pays them. And a broker compares several companies at once that you would otherwise have to approach one by one.
"All policies are the same."
Two policies at the same price can have very different limits, excesses and exclusions. What matters is what the terms say on the day of the claim.
"The broker works for the insurer."
The broker represents the insured party and their interests. The person who represents the company is its agent, which is a different role altogether.
"If I have a claim, I'll sort it out myself."
How the report is opened and documented shapes everything that follows. We handle it for you, and the claim itself too.
"Switching insurer is a hassle."
We handle it for you, including cancelling the previous policy in time so it doesn't renew automatically.
"The compulsory minimum is enough for me."
The legal minimum covers what you cause to others, not what happens to you. That's the difference between a scare and a real problem.
Shall we prepare a D&O quote for directors and officers?
Tell us about your situation and we'll send you a comparison of the best options on the market, the best backing for the right decision.
- No obligationWe give you the price and the cover; you decide.
- No costAs brokers we're paid by the insurer, not by you.
- Fast responseDuring office hours, usually the same day.
What would you like to ask?
We'll get back to you with a D&O quote for directors and officers and a tailored comparison.
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Would rather talk? Call us on 922 235 203 or message us on WhatsApp at 667 420 381.