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Directors and Officers Insurance
Private Companies are not exempt from director and officer claims, a fact many owners, directors and officers do not realize. Here are some examples of claims private companies have experienced:
- An
equity investor is expecting a return which the company proposed. After
a period of time, the return is less than expected, and the equity investor
feels the company, or specifically the board of directors, is responsible for this lack of return and files a lawsuit against the company and/or
directors.
- The
personal assets of directors and officers, as well as those of their
spouses, can be pulled into the settlement of a liability claim against
them or the
company.
- Investors
in a private company can file a claim alleging they were mislead by
financial reports and statements showing the company was healthier than
it actually was.
Non
Profit Entities may have the most vulnerable corporate structure
because unlike public and private companies, non profit entities do not
have easy access to capital which could then be used to protect the board
or officers if a claim is made against them. Directors and officers for
non profit entities are volunteering to give guidance and direction to
the entity and do not realize they have exposure if a claim were to be
made against them.
With non profit management liability in place, the directors and officers can make their decisions and help the entity fulfill the goals and objectives they set out to accomplish without fear of personal financial disaster.
Financial Specialty has the expertise to help you understand the risks your executive group is exposed to and the ability to help you strike a balance between the acceptance and transfer of those risks.
Contact us via e-mail or call Ben Miner at 214-468-8666 to immediately begin the process of structuring the best program to protect the interests of your executives and the Company.
In
The News:
D
& O Coverage offered for Independents
