| Abstract [eng] |
Civil Liability Insurance Contract of a Company Manager Civil Liability Insurance Contract of a Company Manager is one of the fastest growing types of insurance contracts in Europe, although in Lithuania it is not as old as in other countries, where a sufficiently broad doctrine and practice regarding these types of contracts has already been developed. Accordingly, this insurance contract is complicated, because it’s issues are relevant not only in light of insurance law, but also because of issues, that are faced because of Directors’ and Officers’ liability. This paper introduces the main issues of civil liability of company managers, focusing on the main features of this insurance contract both nationally and internationally. Analyzing the doctrinal sources of both Lithuania and other countries and comparing it with the case law of the Supreme Court of Lithuania on civil liability of managers, the main parts of this insurance contract are described and certain conclusions that could be applied to Lithuanian insurance contracts, mainly Directors’ and Officers’ liability insurance contracts, are presented. Policyholders and the insured, insurance law principles that should be applied, common insured and non-insured events, executive liability issues, and moral hazards are discussed more widely. Among other things, the problems caused by the listed aspects are assessed and solutions are provided, such as the inclusion of subsidiaries in the insurance contract, the form of fault of managers, the definition of the requirement and the requirements’ on claims made basis and the problem of moral hazard, which presupposes too much free behavior by company executives. |
