A common misconception is that only large publicly traded companies have risk and exposure to directors and officers liability. Privately held companies may have fewer shareholders, but some may still be potentially adverse. In today’s legal climate privately held companies have exposure and sometimes the risk is significant.
Directors and officers liability insurance can help in these and other areas including:
- wrongful termination
- breach of contract
- merger/acquisition dispute
- financial performance
- executive compensation
- breach of fiduciary responsibility
- financial reporting
- environment damage
While intentions may be good, sometimes seemingly innocent behavior results in lawsuits. The cost of defending directors and officers can be significant and may exceed the total asset value of the company.
Like all insurance, the time to talk about this coverage is before your company has an incident for when a lawsuit is pending, we can’t help that case. That said, if you’ve suffered one lawsuit or have a pending lawsuit against your officers and directors, call us today and let us help.