Liability insurance for members of management boards, supervisory boards and procurators of companies is voluntary insurance and as a type of professional liability, liability insurance is considered as the youngest type of insurance. This type of insurance provides insurance protection for omissions or errors that may occur during the management and administration of a company, even despite due diligence in the conduct. The strong development of liability insurance was influenced by the industrial revolution, which resulted in various numbers of forms of possible liability. The baseline for liability is action of management board members who act with the diligence of a prudent businessman. Liability for damage requires the existence of culpability, which is a responsibility for a fault or wrong act without due diligence. Unlike management board members, a procurator, according to the rules of the ZTD, cannot be held liable for damage to the company's creditors. The liability insurance contract for members of management boards, supervisory boards and procurators of companies is a consensual, reciprocal, bilaterally binding, payable and causal legal transaction. The ZOO defined that the insurance contract obliges the insurer to pay the policyholder the insurance benefit if the insured event occurs, and the policyholder obliges the insurer to pay the insurance premium. The subject of insurance is the liability of members of the management board or supervisory board for damage caused to the company that would arise from a breach of the obligation to conduct the company's affairs with the care of a diligent and conscientious businessman in accordance with Article 252 and Article 272 of the ZTD. The aggregate limit represents the upper limit of the insurer's liability for all insured events in one year, i.e. it represents the maximum amount that the insurer is obliged to pay. The liability insurance contract can also stipulate a self-retention, called a franchise - the insured's participation in the damage. There is a possibility for the injured party to exercise the right to compensation for damage directly from the insurer. The injured party is entitled to claim compensation through a direct lawsuit which the insurer can't object to (Latin actio directa). The right of recourse is the insurer's right to collect the amount of compensation paid from the person who caused the damage.