23.6.2025
Article
Criminal legal protection insurance is playing an increasingly important role, especially for corporate bodies such as managing directors, board members and supervisory board members. In the event of criminal investigation proceedings - for example in corporate criminal law, commercial criminal law, criminal tax law and fine proceedings - criminal legal protection insurance helps to focus fully on the defense. There is also an increased risk of manager liability for executives, which can also affect private assets in an emergency. D&O (directors and officers liability) insurance serves to cushion these financial risks in connection with directors' and officers' liability.
At the beginning of a criminal law mandate, it is regularly checked whether and to what extent an existing legal expenses or D&O insurance policy will cover the defense costs incurred. The prerequisite for insurance cover - for example as part of criminal legal protection insurance or special criminal proceedings costs insurance - is that the insured event has occurred during the term of the contract. The insurer's confirmation of cover provides clarity as to which costs will be covered. It should be noted that the scope of benefits depends on the conditions of the respective insurance contract. While standard insurance policies usually only cover the statutory fees, specialized policies, especially in the area of D&O insurance, often offer extended protection, for example for individual fee agreements, hourly rates or for special professional risks such as compliance violations, criminal tax law or commercial criminal law legal protection.
When selecting a suitable insurance policy, it is advisable to check the contractual conditions carefully. Important aspects include the amount of cover, possible deductibles, regulations on subsequent notification of claims, continuity guarantee and exclusions of certain risks, such as intentional acts. The insurer's conduct in the event of a claim and the dovetailing with other existing insurance policies (e.g. as part of special criminal legal protection or D&O claims) should also be taken into account. For managers, supervisory board members and senior executives in particular, it is advisable to regularly review the conditions to ensure that the liability risks covered are up to date and appropriate.
It should be noted that there is generally no insurance cover for intentionally committed offenses. However, some insurers initially provide cover even in the case of such accusations and reserve the right to reclaim in the event of a later conviction (recourse). If proceedings are discontinued against payment of a fine, the insurance cover usually remains in place in practice. However, the exact consequences depend on the respective contract.
We have already worked with the legal expenses insurers ARAG, DAS (ERGO), ÖRAG, ROLAND Rechtsschutz, Allianz, AXA, HDI, R+V, Zurich and have experience with regard to the respective insurance conditions.
Summary
Taking out criminal legal protection insurance or D&O insurance can be a sensible measure for people in management positions - such as managing directors, board members, supervisory board members or compliance officers - to protect themselves against the financial consequences of investigation and liability risks. It is crucial to check the contractual conditions in advance and update them regularly in order to be able to fall back on appropriate insurance cover in the event of an emergency.
Do you need support in commercial or tax criminal law? Contact us.
T:
0221 29265841
E:
rostalski@rostalski.legal
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ROSTALSKI is an independent law firm based in Cologne. We are specialists in the fields of white-collar criminal law and criminal tax law. Our clients include private individuals, executives and companies as well as public clients. The law firm is regularly listed in the rankings of WirtschaftsWoche, Handelsblatt and FOCUS Business as a TOP address address.
Do you need support in commercial or tax criminal law? Contact us.
T:
0221 29265841
E:
rostalski@rostalski.legal