Directors and Officers (D&O) Liability Insurance is gaining ground among small and medium enterprises in Brazil, moving from being an exclusive product for large corporations. As an SME grows, the complexity of decisions made by partners, administrators, and executives increases, also expanding the legal risks associated with business management, which has led smaller companies to seek this protection instrument as part of the professionalization process.
This movement accompanies the growing relevance of small and medium enterprises in the Brazilian economy. According to a survey by the Brazilian Support Service for Micro and Small Enterprises (Sebrae), small businesses account for 95% of the total active companies in the country and for 26.5% of the Gross Domestic Product (GDP).
In addition to their significant share of GDP, small and medium enterprises concentrate a relevant portion of formal job generation in Brazil, which further reinforces the need for adequate governance and protection structures for this segment.
