What is D&O insurance?
Directors and Officers Liability Insurance (D&O) is liability insurance that protects company directors and officers (and the company itself in certain structures) against personal financial losses arising from claims that they breached their fiduciary duties, made wrongful acts in their corporate capacity, or otherwise face civil liability for corporate decisions. D&O is foundational for any venture-backed or publicly traded company — without it, qualified directors typically refuse to serve given personal exposure to securities class actions, derivative suits, regulatory enforcement, and breach-of-fiduciary-duty claims.
D&O policy structure (Side A, B, C)
- Side A — Direct director/officer coverage: protects directors and officers when company cannot or will not indemnify (insolvency, prohibition by law, derivative suit settlement). Highest priority for non-executive directors.
- Side B — Company reimbursement: reimburses company when it indemnifies directors/officers under bylaws or indemnification agreements.
- Side C — Entity coverage: covers company itself in securities claims (public companies primarily).
Common D&O exclusions
- Fraud, criminal conduct: excluded after final adjudication.
- Personal profit/illegal gain: excluded when proven.
- Bodily injury / property damage: covered by other lines.
- Prior known matters: known claims pre-policy excluded.
- Insured vs. insured: claims between insureds typically excluded (carve-outs for derivative actions, employment claims).
Türk şirketleri için D&O
Türk Anonim Şirket yönetim kurulu üyeleri TTK Madde 553 kapsamında sorumlu yönetici olarak sıkı sorumluluk taşır — şirketin, pay sahiplerinin ve alacaklıların zararlarından kişisel olarak sorumlu. Türk D&O pazarı (özellikle Allianz, Zurich, AIG, Anadolu Sigorta) son yıllarda olgunlaşmıştır. Türk halka açık şirketler (BIST kayıtlı) için D&O standart pratiktir; girişim destekli özel şirketler için Series A+’da D&O standartlaşır. Cross-border holding yapılarında (Cayman/Delaware holding + Türk iştirak) ana şirket D&O ile Türk iştirak D&O entegrasyonu dikkat gerektirir.
Do: review Side A coverage for non-executive directors first; understand exclusions and severability provisions; renew before any major corporate action (M&A, IPO, dispute).
Don’t: rely on indemnification provisions alone — TTK and Delaware law both have limits on when company can/must indemnify (insolvency, illegality, derivative suits).