Do you guys know if companies in Taiwan must have by law a “Civil Responsibility insurance”? Meaning that in case any issue or damages is derived from your industrial/business activity then this insurance offers you certain coverage.
I know this is a must in Europe for any type of business (no matter how small).
We have a customer asking to see this insurance and after asking at my company I’m surprise to see that we don’t have it and according to them this is not compulsory here in Taiwan.
I hope I can get some answer from you guys. Thanks in advance.
It’s called D&O insurance (for Directors and Officers).
Call up some insurance firms to talk about these specific policy.
It’s to protect the top management personally.
There are 3 related laws that “require” such insurance:
The Taiwan government Company act, article 193-1 requires a company to obtain directors’ liability insurance with respect to liabilities resulting from exercising their duties during their terms of directorship.
Taiwan Stock Exchange Corporation Operation Directions for Compliance with the Establishment of Board of Directors by TWSE Listed Companies and the Board’s Exercise of Powers, article 16 requires a listed company to take out D&O liability insurance with respect to liabilities resulting from exercising their duties during their term of office.
Corporate Governance Best Practice Principles for TWSE/TPEx Listed Companies, article 39 requires a listed company to take out directors’ liability insurance with respect to liabilities resulting from exercising their duties during their terms of occupancy so as to reduce and spread the risk of material harm to the company and shareholders arising from any wrongdoings or negligence by a director.
