Liability Insurance for Directors & Officers
While I look after the corporation, who looks after me?
As an officer or director of a company, you undoubtedly spend time making sure your corporate risks are protected.
How much time do you spend making certain that you are protecting yourself?
With the litigious nature of society today, many businesses have felt an upswing in lawsuits and actions. Directors and Officers are particularly vulnerable, because their personal assets can actually be exposed.
Lawsuits can come from a wide array of sources: Clients, Competitors, Creditors, Employees, Government, M&A Parties, Shareholders and Vendors.
ARE YOU AWARE OF THE FACTS?
According to Tillinghast-Towers Perrin D&O surveys:
• 64% of claims brought against private companies were brought by shareholders and other third parties, while 25% were brought by employees.
• Defense costs can be significant, ranging from $100,000 to nearly $2,000,000. Claim frequency and severity have continued to increase.
• According to the 2005 Chubb Private Company Risk Survey, 26% of the companies had experienced a D&O-related event in the past five years. These events included the company and/or its directors and officers’ being sued by a customer, government or regulatory agency, vendor, partner or other shareholder.
|Size of Company||Percent that experienced D&O event:|
|250 or more employees||39%|
For the companies in the 2005 Chubb Private Company Risk Survey that had experienced a D&O liability lawsuit in the past five years, the average reported loss (settlement, judgment, and legal costs) was $308,475.
WHAT CAN THE CAPITOL GROUP DO FOR YOU?
• Identifies exposures to risk
• Identifies correct insurance coverage to purchase
ARE YOU PROTECTED?
The current world of “Executive, Financial and Professional Liability” is one that no privately-held company should take lightly. Claims, large and small, are filed everyday by current, former and prospective employees alleging employment practices related wrongdoings. From failure to promote and sexual misconduct to wrongful termination and gender discrimination, these alleged claims are growing in popularity. Contact The Capitol Group at (800) 527-0669 to learn more about potential risks.