Cuiuque on, to each his own. Just being in the right place at the wrong time and we risk making own goal!
If we believe that Latin is a dead language, we are wrong: when we deal with managers’ liability, specially abroad, is alive more than ever.
In life, as in the civil society, we are all accountable to someone. As citizens, as taxpayers, as fathers, even when we play soccer with friends in the weekends, there are some rules to follow: if we hurt someone, or if we get tripped, we are all responsible.
But when we represent a company, when we are asked to make important decisions, the game is another; to switch from yellow card into the red one it takes a second.
The overview of the situation.
In broad terms, not only companies but also individuals are subject to liability.
Everyone buys insurance: not only manufacturing and commercial companies, to be covered againts defective product’s damage; but also professionals seek their own protection againts legal actions taken by disappointed customers.
And what about business executives? Do they have also a specific personal responsibility when they have to make decisions?
Robert leads an Italian company in Russia.
Question: «The Italian HQ informs me I am covered, but am I for real? I don’t know anything about if there is any coverage in place; I am just got here, I dont speak Russian and I am a bit worried; I do not find anything about it on the web, nor I don’t know the local legislation: What can happen to me? Am I safe?»
Answer: Each country has its own legislation. It is advisable to double check, with a trusted lawyer, if the local law requires for the manager liable in Russia.
Stephen, tax advisor in Italy, is in the board of a new-co in Poland.
Q: «I am trying to collect more and more information about my risk exposure, but it is very difficult to understand the intricate insurance language…can you imagine here in Poland. What about to have a look together to the policy wordings?»
A: If we are not aware that the foreign law of the country where we work has possibly changed to our disadvantage, we may run a serious risk. To arrange a meeting between our trusted risk managers and lawyers is always the best solution.