Directors’ Liability Insurance
The directors' liability (also known as D&O or BCA insurance for short) insures claims that can be brought by third parties against the director(s) and supervisory directors of a legal person in connection with (alleged) improper management.
Third parties that can be considered include the legal person itself, but also shareholders, employees, suppliers and buyers.
This insurance protects the private assets of directors against the financial consequences of claims. In addition to compensation for (property) damage suffered by third parties, the insurance (total up to the insured sum) will also reimburse the costs of the legal defense. Even if it appears that the claim was incorrectly made.
For the study associations, a policy has been concluded by the University of Twente (UT) whereby the directors are insured. This policy will cost 50 euros annually. The insured amounts are EUR 1,000,000 per event / claim.
Student organisations have to apply for this insurance. This is possible every year by sending the filled in application from before July 1st to email@example.com.