Directors and Officers Liability
The reasons for which a company director can be sued are numerous and so varied as the business itself. Pursuant to the provisions contained in the effective Bulgarian legislation – the Commerce Act, the Obligations and Contracts Act, the Public Offering of Securities Act, etc., as well as by virtue of the Articles of Association of the company or a Management Contract concluded, the directors could be prosecuted by many parties:
Directors and Officers Liability provides coverage for the payment of:
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compensation awarded or out-of-court settlement reached, including legal costs incurred which the insured persons are obligated to pay by virtue of an effective court judgment in relation to their wrongful acts or omissions;
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losses ensuing from administrative fines and penalties;
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legal defense costs;
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investigation costs;
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reputation restoration costs;
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Criminal cases – the legal costs incurred up to the moment of proving the insured person’s fault are covered;
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Insured against insured – claims of partner/member against partner/member or of a subsidiary against the parent company;
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Directors who have resigned;
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Claims for property damages and bodily injury – the legal costs are covered.