Directors and Officers
Directors and officers are at risk of personal liability claims arising out of their position, regardless of whether the company is privately or publicly held. While the company often provides indemnification, this may not be available for either legal or financial reasons. As a result, most public companies and many private firms purchase Directors and Officers Liability Insurance to supplement the protection offered by their company.
Many insurance companies offer some form of D&O Insurance, and each policy form is unique to that carrier. Given the complex liabilities you face as a director or officer, it can be very difficult to determine which one is best suited to your needs. Companies contemplating an initial public offering of stock, an acquisition of another entity or other operational changes will have special risks to address.
In addition, Fiduciary or ERISA liability arising from the management of corporate sponsored retirement and savings plans can create strict liabilities that are non-transferable. Through your Directors’ and Officers’ Liability program many of these concerns can be addressed.