Directors & Officers Liability

DIRECTORS & OFFICERS LIABILITY


Companies of all sizes, public and private, are susceptible to costly litigation with respect to the decisions made by its various Directors and Officers. Private companies, while having some different exposures than publicly traded companies, still face risks associated with various securities laws, shareholder derivative suits, employment litigation, and claims of business interference and breach of fiduciary responsibility.

Lawsuits against private companies come from many sources.  While shareholders and employees are the most likely groups to sue private companies, suits can come from competitors, clients, suppliers, vendors, banks and other creditors.  Suits may include allegations of fraud, unfair business practices, interference with prospective economic advantage, and many other wrongful acts.

The Personal Assets of Your Directors and Officers Are at Risk.

Regardless of the number of shareholders, directors and officers of companies are exposed to claims of breach of fiduciary duty, as well as claims from employees, clients, vendors and competitors.  D & O coverage provides protection for defense costs, settlements and judgments associated with these types of claims.

An outside directorship liability policy is available as supplementary protection to assure sufficient limits for the exposure created when a company’s director, officer or employee serves in an outside director position at its request.

 

 

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