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  1. Services
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  3. Insurance Law
  4. D&O and Professional Liability Insurance Programs

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Drafting and Auditing Insurance ContractsInsurance Compensation DisputesCompulsory Motor Third-Party Liability (MTPL) Insurance DisputesReinsurance ContractsD&O and Professional Liability Insurance Programs
Insurance Law

D&O and Professional Liability Insurance Programs

Is directors' and officers' liability insurance mandatory?

Only the broker's professional liability insurance is mandatory by law; D&O cover is a voluntary non-life product with contractually set conditions.

Which licence class covers this product?

Liability insurance belongs to the non-life class; the law distinguishes life, non-life and reinsurance classes.

What is required of a broker for financial stability?

A broker's stability rests on its capital/guarantee fund and professional liability insurance, with segregated accounts at a licensed bank and an audited annual report.

Who sets the detailed technical requirements?

Detailed requirements — limits, conditions, minimum amounts — are set by normative acts of the Insurance State Supervision Service.

4 min·22 Sep 2026

Conceptual Framework of Liability Insurance

Directors' and officers' liability programs, like professional liability insurance generally, rest in Georgia on the Law of Georgia on Insurance. Under the law, the object of insurance may be any property-related or personal non-property interest that does not contradict Georgian legislation. Within this framework, liability insurance is of particular importance — insurance connected with damage caused by the insured person to a third (natural or legal) person or to that person's property. It is precisely this category that covers programs allocating the liability risks of governing persons and professionals.

It is worth noting that the law does not give these products a separate statutory name: directors' and officers' liability insurance belongs to the voluntary non-life class, and its detailed content is shaped by civil-law design — the conditions of the contract. When building a program, the precision of the contractual formulations is therefore decisive.

Licence Classes and the Insurer's Corporate Form

The licence for insurance activity is issued by the Insurance State Supervision Service in accordance with the Law on Licences and Permits, and may be granted only to a joint-stock company. The licence is issued for only three activities: life insurance; insurance (non-life); and reinsurance. Professional liability programs fall within the non-life class.

The licence is issued for an indefinite term and to a specific insurer, and its transfer to another legal person is impermissible. The insurer must use the insurance licence at least once every 6 months, and where changes are made to the documents submitted for licensing it must notify the Service and submit the relevant documents within 7 working days of the change. A licence applicant submits, among other things, a 3-year business plan and documentation confirming the fitness of significant shareholders and administrators.

Updated: 15 Oct 2026

Related Services

Drafting and Auditing Insurance ContractsInsurance Compensation DisputesCompulsory Motor Third-Party Liability (MTPL) Insurance DisputesReinsurance Contracts