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Why Do I Need D&O Coverage?

  • No other insurance policy adequately covers the potential loss.
  • D&O claims are costly and very time consuming. Because the policies we offer will defend you, managing the claim will be less costly.
  • To attract qualified outside directors who generally will not serve on a Board in the absence of D&O coverage.
  • Suits can be brought by shareholders particularly those not active in the business. When family members bring claims, they become even nastier and more complicated.
  • Suits can be brought by competitors. Perhaps you planned to purchase a competitor, but after your due diligence decided against it. In the meantime, the competitor might sue you alleging you feigned interest in order to gain access to sensitive information that you subsequently used to your advantage.
  • Former owners of firms you acquired can bring suits. Imagine a former owner seeing your success with his former company becoming jealous enough to sue you for underpayment or failure to live up to your agreement.
  • Vendors.  When two firms enter into an agreement, one firm acts as a wholesaler to the other.  A firm enters into an agreement with a second firm to act as a wholesaler (Tried to Reword for you tell me what you think) to it. The second firm, dissatisfied by the arrangement, sues alleging the first firm entered into a franchise agreement without proper representations.

Strange as they may seem all of the above actually happened!