D&O insurance worth €5 mln in 2008

“The amounts insured are not very relevant, but probably the average comes to €500,000, as many companies buy this insurance at insignificant limits,” according to QBE Insurance (Europe) Limited Romania’s Subscription Manager, Mihai Lucanu. QBE Insurance has been operating in Romania for a few months and has since contracted several D&O insurance policies.

Most companies are compelled by the commercial entities law to take out manager liability insurance. However, they can do this for a nominal amount. According to Allianz Tiriac’s liability insurance subscription Manager, Ioana Baniceru, “such a policy is viable for companies with high-performance management, a good financial situation, and education in the insurance field.” For 2008, Allianz-Tiriac estimates some €150,000 in gross premiums for D&O insurance.

Small companies usually take out insurance for a €100,000-200,000 liability, while major companies close policies for some €10 mln. D&O insurances cover manager liability for mistakes and mismanagement.