Commercial Insurance

The Top Ten Reasons Why Private Company Directors and Officers Need D&O Insurance.

1. Involvement in day-to-day operations makes private company directors and officers particularly vulnerable to claims brought by employees.

2. Third party discrimination claims, brought by customers and clients, are increasingly common in today’s society.

3. D&O Insurance from a quality insurer can take private companies through their IPO and into public ownership well protected.

4. Complex claims brought by competitors, such as antitrust and unfair competition claims against directors and officers, can generate sky high defense and settlement costs.

5. Investigations by government and regulatory agencies can generate enormous defense costs – even if no wrong doing is found.

6. Company assets can be closely tied to personal wealth of directors and officers, making claims brought solely against the company vital.

7. When the company cannot indemnify its directors and officers in D&O claims, D&O insurance can step in instead.

8. Shareholders of private companies frequently sue for inadequate or inaccurate disclosure in financial reports and statements made in private placement materials.

9. D&O insurance can protect the personal assets of the directors and officers spouse, as well as the assets of a diseased director and officers estate.

10. With D&O insurance in place, management can focus on managing the company, rather than managing a protracted litigation.