| • |
No other insurance policy
adequately covers the potential loss. |
| • |
D&O claims are costly
and very time consuming. Because BAM will defend
you, managing the claim will be less hassling. |
| • |
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. If they happen to also be family members,
the claims can become even nastier. |
| • |
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. A firm enters into an agreement
with a second firm to act as a wholesaler to it.
The second firm, dissatisfied by the arrangement,
sues alleging the first firm entered into a franchise
agreement without proper representations. |
