Managerial Responsibility in the Age of Chaos: Is Insurance the New Lifeline?
In a world where business uncertainty runs wild like never before, managers find themselves on the front lines. Inflation is galloping, supply chains are breaking, and geopolitical tensions threaten to shatter every plan. In such chaos, running a company is not just a job – it’s survival.
But do managers in Serbia truly grasp the weight of their responsibility? The Law on Business Companies clearly defines their liability, but in practice, many take it lightly. While large foreign corporations and domestic giants have developed protection mechanisms, small and medium enterprises often remain exposed and vulnerable.
What is managerial responsibility? Managerial responsibility refers to directors and board members who make decisions on behalf of the company. Every decision carries risk – from unintentional mistakes to lawsuits that can jeopardize the firm. In such cases, Directors & Officers Liability Insurance (D&O) can be a true safety net.
Why is D&O insurance crucial? This policy covers damages arising from business decisions that were not abuses but unintentional errors. This means managers can make decisions without fear that every mistake will lead to bankruptcy. The insurance takes on the financial burden, whether it’s paying damages or legal defense in court.
Is Serbia ready for this? Lawyer Igor Dodić emphasizes that the position of a director in Serbia is extremely demanding. They are visionaries and bearers of legal responsibility but often lack adequate legal support. He believes that professional liability insurance should become a standard, not a luxury.
What else can help? Besides D&O insurance, companies can contract general liability policies covering damages to third parties, as well as product liability insurance protecting against manufacturing defects. There are also policies covering costs of product recalls, a growing phenomenon in modern business.
Conclusion: Will managers finally take it seriously? In a world where risks are increasing and business is unpredictable, managerial liability insurance is not just an add-on – it’s a necessity. Serbia must raise awareness on this topic and make these policies accessible and affordable for all business levels.
What about you? Do you think every manager should have D&O insurance? Or is it just another cost small businesses can’t afford? Drop a comment, let the debate begin – maybe your idea will change the game!
Slug: menadzerska-odgovornost-osiguranje-spas-poslovanje
Political Compass:
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