Recently the large companies even more often conclude contracts of insurance called D&O (directors and officers liability insurance). The risks specified in them are connected with responsibility of heads and directors for acceptance of incorrect decisions. With an exit of domestic business on a world scene the given service becomes more and more claimed; however the exact understanding of sense of this kind of insurance and its urgency is absent.

The object of insurance D&O (directors and officers liability insurance) is the civil liability of the manager before the third parties to the interests of which can be caused some damage. These persons are shareholders and workers of the company, partners and contractors, the creditors regulating and supervising bodies.

Naturally there are two questions: what sort of the damage is caused to the third parties and in what degree it is connected with management decisions? Quite often the heads make obviously wrong decisions proceeding from the mercenary promptings counter with company overall aims. And sometimes happens that the manager makes an inadvertent mistake.

Unjustified expenditure, disclosure of the internal information, a discrepancy assumption at fulfillment of transactions and contract signing, infringement of the antimonopoly both labor legislation and inactivity in critical situations these all are the results of such incorrect decision. Every year the quantity of claims to the heads that follows from a neglect of their duties only grows. It also means that the description procedure in the policy of the list of the insured risks is basically absent.

This type of insurance has arisen in the USA in 1934 and later on it has been adopted in some countries of Western Europe. The great influence on development of insurance of responsibility of heads had the expansion of the collective claims in the United States in 1980-s. Judicial claims on billions dollars and a turn of the bankruptcies connected with them have shown how much dangerous are managements errors. Soon insurers have considerably expanded and have specified the list of the risks covered with the policy of assurance of responsibility of directors.

It is interesting that the main part of an insurance policy on D&O consist of exceptions of an insurance covering. An essence of these exceptions without dependence from formulations means that they minimize the cost of insurance protection. For example, there are exceptions of claims from outside the principal shareholders; the claims connected with environmental contamination and other.

There is actually no standard list of exceptions as well as the standard list of risks mentioned above. Usually this list depends on market conditions, concrete requirements from outside the companies and finally even from a delicate work of the lawyers. Quality of the insurance and volume of an insurance covering as a result depends on that list.

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