The verdict from the German Higher Regional Court in the city of Kiel dated February 26, 2024, Case No. 16 U 93/23, casts a spotlight on the essential duties of corporate management within the framework of operational risk prevention and insurance management. In a world where companies are increasingly exposed to complex risks, from natural disasters to cyber-attacks, this verdict holds particular significance. It concerns not only the specific situation of a bakery that suffered considerable damage from a fire but also the fundamental question of how meticulously directors and officers must review and adjust their company’s insurance coverage.
