Balance Sheet / Income Statement / M&A Activity / Funding Activity / claim history
Directors & Officers Liability
D&O coverage exists to address allegations made against Directors, Officers, or the Corporation / Organization for mismanagement, misrepresentation or other items tied to running a business. Because this coverage is tied to management, it is often irrelavent what the nature of operations are; bakery or technology firm, etc.
Allegations can be brought against the individual Directors / Officers as well as the corporation. Becasue of this, coverage is often required by investors / venture capital firms that will have a representative sitting on the Board.
Risks addressed by D&O Liability include:
- Claims brought by investors or others with a financial stake in the company without Board representation alleging misrepresentations, or mismanagement
- Suits against individual Board members (CEO, CFO, etc) solely based on their position and their duties to the company as an Officer or Director
- Allegations brought by competitors or other parties for unfair business practices
- Allegations of an error, omission, misstatement, misleading statement, neglect or breach of duty brought against the Company and /or the dividual Directors / Officers
Anytime there is a Board, coverage should be considered. Whether it's a condo association, charitable organization or BioTech firm, both the organization and the individuals on the Board have exposure.