Criminal defense cost insurance and D&O insurance must go hand-in-hand in order to offer company officers sufficient protection. A business can quickly find itself under scrutiny from the Office of the Director of Public Prosecutions. Numerous legal provisions, some of which are constantly changing, make it difficult for business people to maintain an overview. For example, suspicion of tax evasion can lead to accusations of a criminal act, or a chief executive may be found wanting in terms of due diligence.
In many cases, criminal investigations and civil law claims run in parallel. Injured parties often await the results of state legal investigations before deciding to take a civil action against an alleged perpetrator. D&O insurance often contains a legal protection element for this reason. However, this is often inadequately formulated. This is why legal protection insurance for industry guarantees separate, comprehensive legal protection for the company’s employees.
What is insured?
Criminal defense cost insurance guarantees insurance protection specifically in cases of
- Suspicion of tax fraud
- Accusations of corruption
- Investigations into alleged inadequacies in occupational safety after an accident at work
- Accusations in relation to data protection
- Company closures
and also affords preventive legal protection before investigations are initiated.
Who is insured?
The insurance cover usually encompasses all of your employees and members of the company. Cover should apply worldwide and to all branches and subsidiaries.
The important thing here is to have a fully functioning network of defence lawyers.
Who provides the insurance?
Only a handful of legal expenses insurers still underwrite criminal defense cost insurance in Germany. Because of the sharp rise in the number of claims in recent years and the increasing damages awarded, insurers have become extremely restrictive in the provision of insurance cover for certain sectors, such as the banks.