MANAGEMENT LIABILITY

Private Company Directors & Officers

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Companies today are facing increased liability threats, driven largely by new legislative duties and the escalating number of private securities related claims.

This heightened risk can translate into multi-million dollar lawsuits against companies and their directors, officers, or employees. Directors and Officers Liability Coverage is the only way to protect the personal assets of these decision makers.

What is Directors and Officers Insurance for Private Companies?

D&O liability insurance protects individual directors and officers from personal losses if they are sued for alleged wrongful acts while managing the private company. This insurance also protects the entity itself, covering legal fees, settlements, and other costs associated with defending against such claims. This coverage ensures that the personal assets of directors and officers are protected against claims that arise from decisions and actions made within the scope of their regular duties.

Which Employees in Private Companies Need D&O Insurance?

Directors and officers’ liability insurance is a versatile policy type that caters to a wide range of organizations. From for-profit businesses and privately held firms to not-for-profit organizations and educational institutions, the spectrum of entities that can benefit from D&O insurance is broad.

Why Do Private Companies Need D&O Insurance?

Privately held firms, while not facing the public scrutiny of larger corporations, are not immune to the risks of litigation. Internal disputes, employment practices liability, and financial performance can all lead to situations where directors and officers are held accountable. In these cases, D&O insurance provides essential protection.