Having smelled something burning, AS RB Rail, the implementer of the Rail Baltica railway project, which is owned by the governments of the three Baltic states, on December 23 last year announced a tender for directors’ and officers’ liability insurance. The procurement specification provides that the insurance must cover the liability of both current and former management board and supervisory board members, as well as other persons, including those who have retired.
The requirements for the insurer stipulate that the policy will cover any financial expenses related to the liability of officials, including but not limited to losses, compensation, expert examination costs, legal and litigation costs, as well as expenses that may arise when concluding settlements, and also expenses that may arise as a result of any claims. Thus, the implementers of the Rail Baltica project have decided, using taxpayers’ money, to insure themselves against all types of liability.
The insurance must cover liability towards third parties in cases where the insured person has caused losses by acting illegally, negligently, erroneously, by lying, distorting information, being in a conflict of interest, allowing accounting errors and losses, exceeding powers, etc.
The terms also state that AS RB Rail received information in the first half of 2025 from a former RB Rail management board member/chairman who had received an invitation to appear before the Anti-Corruption Bureau (KNAB) in order to provide explanations regarding decisions taken in connection with the Rail Baltica project during the period from October 2015 to September 2018. He was asked to testify within the framework of criminal proceedings that were previously reported in an LSM article.
The list of persons to be insured is also impressive:
- Any person who was, is, or will become a member of the RB Rail management board or supervisory board;
- Any person who was, is, or will become the head or an officer of RB Rail branches in Latvia, Lithuania, and Estonia, as well as acting officials, members of procurement commissions, etc.;
- Company employees if the claims concern illegal actions in employment matters;
- Any employee against whom a claim could be brought for illegal actions, as well as those jointly liable in such situations;
- The responsible persons’ spouses or partners if the claims affect the persons’ assets in whole or in part, etc.
The specification sets out two options for liability limits, as well as separate sub-limits. The sub-limits define, for example, a person’s liability in the area of corporate taxes, which must be at least one million euros, as well as various other risks in the range from 100,000 euros to half a million. No limit is set at all for lawyers’ fees, while the limit for “crisis response” must be at least 250,000 euros. In the case of civil fines, administrative fines, and sanctions, the sub-limit must be at least 200,000 euros, and in the area of employment law – at least 500,000 euros.
The specification provides that such a policy must operate retroactively, starting from October 28, 2014.
The policy will be paid for by AS RB Rail, that is, by the residents of the Baltic states. Insurers can apply until the end of January.
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Originally published at https://inc-baltics.com/planots-apdrosinat-rail-baltica-amatpersonas-pret-atbildibu-projekta-ieviesana-ar-12-gadu-atpakalejosu-datumu-un-atlidzibu-limitu-lidz-pat-20-miljoniem/
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