Privately held companies are exposed to many of the same kind of Management Liability claims as are their publicly held counterparts. While not subject to compliance with the Sarbanes-Oxley Act, the D’s and O’s of privately held firms are subject to shareholder claims nonetheless. Private company’s directors and officers generally have more day-to-day involvement with operations increasing exposure to employment practice claims from employees.

To entice qualified directors and officers your company must indemnify and protect them from litigation which a directors and officers liability (D&O) policy will do. Directors and officers can seek shelter from management liability claims with a D&O policy even when the company can not indemnify them.

For most mid-sized private companies, a management liability lawsuit can have a particularly severe impact on the company's owner since their personal net worth is often closely tied to the financial health of the company.

Click on the subject to the right in which you are interested in learning more, or contact us via e-mail or by calling Ben Miner at 214-468-8666.

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Private Company Loss Scenarios

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